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:

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

 

a. $1,685 b. $2,685 c. $1,000 d. $685

Answer 1

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