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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 (5000 omitted) Finished goods Inventory, March 31 $36 Cost of goods manufactured Cost of goods available for sale Less Findshed goods Inventory, April 30 Cost of goods sold 1 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 Deprecation expense includes the following: 670 5 706 283 5423 anotacturing plant Manufacturing equipment Office pent 5.20,000 31,200 11.000 5.63,000 . The company manufactured 7,630 tons of cable during May. The inventory balances at May 31, follow: Materials Inventory $35,000 Work-in-Process Inventory $256,000 Finished Goods Inventory $223,000 NORTON INDUSTRIES Preclosing Account Balances May 31 ($600 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 41 210 40 174 283 1,290 70 560 80 900 1,745 20 2 570 332 114 146 66 155 41 210 40 174 283 1,290 70 ($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 560 80 900 1,745 20 2 579 332 114 146 84 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 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 Factory overhead Total factory overhead Total manufacturing costs Total manufacturing costs Cost of goods manufactured 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 Cost of goods available for sale 17 Cost of goods sold Selling, general & administrative expense; Skipped Total selling general, & administrative expense Other revenue

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