In: Accounting
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:
Job No350 Jobs 356, 357, 358, and 359 were completed. Jobs 356 and 357 were sold at a profit of $500 on each job.
What is the ending balance of Cost of Goods Sold for Adams Company at the end of the first quarter?
a. $1,685
b. $2,685
c. $685
d. $456
Correct option is: a. $1,685 | |||
Workings: | |||
During first quarter Job 356 and Job 357 were sold: | |||
Cost of goods sold | = | Balance of Job 356 + Job 357 | |
= | $450 + $1235 | ||
= | $ 1,685 | ||