Question

In: Accounting

Adams Company is a manufacturing company that has worked on several production jobs during the first...

Adams Company is a manufacturing company that has worked on several production jobs during the first quarter of the year. Bel16. What is the gross profit for Adams Company at the end of the first quarter? a. $1,685 b. $2,685 c. $1,000 d. $685

Adams Company is a manufacturing company that has worked on several production jobs during the first quarter of the year. Below is a list of all the jobs for the quarter:
Balance
Job. No. 356 357 358 359 360 $ 450 1,235 378 689 456
Jobs 356, 357, 358, and 359 were completed. Jobs 356 and 357 were sold at a profit of $500 on each job.
 
12. What is the ending balance of Work in Process for Adams Company at the end of the first quarter?
a. $0 b. $456 c. $3,208 d. $2,752
 
13. What is the ending balance of Cost of Goods Sold for Adams Company at the end of the first quarter?
a. $456 b. $2,685 c. $1,685 d. $685
 
14. What is the ending balance of Finished Goods for Adams Company at the end of the first quarter?
a. $456 b. $1,067 c. $1,685 d. $2,752
 
15. What is the balance of Sales for Adams Company at the end of the first quarter?
a. $1,685 6. $2,685 c. $1,000 d. $685
 
16. What is the gross profit for Adams Company at the end of the first quarter?
a. $1,685 b. $2,685 c. $1,000 d. $685

Solutions

Expert Solution

12. Solution: $456

Working: Ending balance of WIP for Adams company at the end of the first quarter: Job no 360 = $456

13. Solution: $1685

Working: Ending balance of COGS for Adams company at the end of the first quarter = Job no 356 + Job no. 357 = $450 + $1235 = $1685

14. Solution: $1,067

Working: Ending balance of finished goods for Adams company = Job no 358 + Job no. 359 = $378 + $689 = $1,067

15. Solution: $2,685

Working: Balance of sales at the end of 1st quarter for Adams company = Job no 356 + Job no. 357 + Profit = $450 + $1235 + $1000 = $2,685

16. Solution: $1,000

Working: Gross profit for Adams company at the end of the 1st quarter = $500 profit on each job = $500 * 2 = $1,000


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