Question

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

Answer 1

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

Answer 2

a.$1,685.

cost of Job 356	450
cost of Job 357	1,235
cost of goods sold	$1,685

only cost of jobs which are sold is required for the problem.