Cost of Goods Manufactured, Income Statement 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 2010 follows:
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 2010.
• The inventory balances at May 31, 2010, follow:
• Direct materials inventory $23,000
• Work-in-process inventory $220,000
• Finished goods inventory $175,000
Required
Based on Exhibit 3.15A, prepare the following:
1. Statement of cost of goods manufactured for Norton Industries for May 2010.
2. Income statement for Norton Industries for May 2010.