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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

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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 statement of cost of goods sold for April follows: NORTON INDUSTRIES Statement of Cost of Goods Sold For the Month Ended April 30 (500e omitted) Finished goods inventory, March 31 Cost of goods manufactured Cost of goods available for sale Less: Finished goods inventory, April 30 Cost of goods sold $ 31 750 $ 781 253 $ 528 Additional Information Of the utilities, 80% relates to manufacturing the cable: the remaining 20% 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% is related to manufacturing the cable the remaining 40% is related to the sales and administrative functions. Depreciation expense includes the following: . Manufacturing plant Manufacturing equipment office equipment $ 19,200 32,800 7.000 $ 59,000 The company manufactured 7,870 tons of cable during May The inventory balances at May 31, follow Materials inventory $25,000 Work in Process Inventory $226,000 Finished Goods Inventory $183,000 . Materials Inventory $25,000 Work-in-Process Inventory $226,000 Finished Goods Inventory $183,000 . $ NORTON INDUSTRIES Preclosing Account Balances May 31 ($000 omitted) Cash and marketable securities Accounts and notes receivable Direct materials inventory (April 30) Work-in-process inventory (April 30) Finished goods inventory (April 30) Property, plant, and equipment (net) Accounts, notes, and taxes payable Bonds payable Paid-in capital Retained earnings Sales Sales discounts Other revenue Purchases of direct materials Direct labor Indirect factory labor Office salaries Sales salaries Utilities Rent Property tax Insurance Depreciation Office supplies expense Freight-in for materials purchases 45 200 30 154 253 1,130 80 590 100 900 1,504 20 2 520 272 94 126 46 105 11 64 30 59 8 17 Required: 1. Prepare a statement of cost of goods manufactured for Norton Industries for May. 2. Prepare an income statement for Norton Industries for May. Required 1 Required 2 Prepare a statement of cost of goods manufactured for Norton Industries for May. (Enter your answers in thousands of dollars.) Norton Industries Statement of Cost of Goods Manufactured For the Month Ended May 31 (5000) omitted Direct materials Materials available Direct materials used Factory overhead Total factory overhead Total manufacturing costs Total manufacturing costs Cost of goods manufactured Required Required 2 > Prepare an income statement for Norton Industries for May. (Enter your answers in thousands of dollars.) Norton Industries Income Statement For the Month Ended May 31 (5000) omitted Net Sales Cost of goods sold: Cost of goods available for sale Cost of goods sold Selling, general & administrative expense: Total selling general, & administrative expense Other revenue

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