Norton Industries, a manufacturer of cable for the heavy construction industry, closes its books and prepares financial statements at the end of each month The statement of cost of goods sold for April 2000 follows Norton Industries Statement of Cost of Goods Sold For the Month Ended April 30, 2000 ($000 omitted) Inventory of finished goods, March 31 $ 50 Cost of goods manufactured 790 Cost of goods available for sale $840 Less inventory of finished goods, April 30 247 Cost of goods sold $593 Additional Information Of the utilities, 80 percent relates to manufacturing the cable the remaining 20 percent relates to the sales and administrative functions All rent is for the office building Property taxes are assessed on the manufacturing plant Of the insurance, 60 percent is related to manufacturing the cable the remaining 40 percent is related to the sales and administrative functions Depreciation expense includes the following Manufacturing plant $20,000 Manufacturing equipment 30,000 Office equipment 4,000 $54,000 The company manufactured 7,825 tons of cable during May 2000 The inventory balances at May 31, 2000, follow Direct materials inventory $ 23,000 Work in process inventory 220,000 Finished goods inventory 175,000 2 Norton Industries Preclosing Account Balances May 31, 2000 ($000 omitted) Cash and marketable securities $ 54 Accounts and notes receivable 210 Direct materials inventory (4 30 00) 28 Work in process inventory (4 30 00) 150 Finished goods inventory (4 30 00) 247 Property, plant, and equipment (net) 1,140 Accounts, notes, and taxes payable 70 Bonds payable 600 Paid in capital 100 Retained earnings 930 Sales 1,488 Sales discounts 20 Other revenue 2 Purchases of direct materials 510 Direct labor 260 Indirect factory labor 90 Office salaries 122 Sales salaries 42 Utilities 135 Rent 9 Property tax 60 Insurance 20 Depreciation 54 Interest expense 6 Freight in for materials purchases 15 Prepare a statement of cost of goods manufactured and an income statement for Norton Industries for May 2000

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Norton Industries, a manufacturer of cable for the heavy construction industry, closes its books and prepares financial statements at the end of each month. The

Norton Industries, a manufacturer of cable for the heavy construction industry, closes its books and prepares financial statements at the end of each month. The statement of cost of goods sold for April 2000 follows: Norton Industries Statement of Cost of Goods Sold For the Month Ended April 30, 2000 ($000 omitted) Inventory of finished goods, March 31 $ 50 Cost of goods manufactured 790 Cost of goods available for sale $840 Less inventory of finished goods, April 30 247 Cost of goods sold $593 Additional Information • Of the utilities, 80 percent relates to manufacturing the cable; the remaining 20 percent relates to the sales and administrative functions. • All rent is for the office building. • Property taxes are assessed on the manufacturing plant. • Of the insurance, 60 percent is related to manufacturing the cable; the remaining 40 percent is related to the sales and administrative functions. • Depreciation expense includes the following: Manufacturing plant $20,000 Manufacturing equipment 30,000 Office equipment 4,000 $54,000 • The company manufactured 7,825 tons of cable during May 2000. • The inventory balances at May 31, 2000, follow: Direct materials inventory $ 23,000 Work-in-process inventory 220,000 Finished goods inventory 175,000 2 Norton Industries Preclosing Account Balances May 31, 2000 ($000 omitted) Cash and marketable securities $ 54 Accounts and notes receivable 210 Direct materials inventory (4/30/00) 28 Work-in-process inventory (4/30/00) 150 Finished goods inventory (4/30/00) 247 Property, plant, and equipment (net) 1,140 Accounts, notes, and taxes payable 70 Bonds payable 600 Paid-in capital 100 Retained earnings 930 Sales 1,488 Sales discounts 20 Other revenue 2 Purchases of direct materials 510 Direct labor 260 Indirect factory labor 90 Office salaries 122 Sales salaries 42 Utilities 135 Rent 9 Property tax 60 Insurance 20 Depreciation 54 Interest expense 6 Freight-in for materials purchases 15 Prepare a statement of cost of goods manufactured and an income statement for Norton Industries for May 2000.