Adams Company is a manufacturing company that has worked on

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: ob No. 356 Dob No. 357 No. 358 ob No. 359 No. 360 1,235 $43 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? ca. $456 Ob. $685 Oc. $2,685 Od. $1,685

Solution

Answer: Option d. $1,685

Ending balance for the cost of goods sold will be the cost of Job no. 356 and 357 which were sold during the quarter.

Cost of goods sold = $450 + $1,235 = $1,685