Use the information below for Adams Company to answer the questions that follow.

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:

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) $456
B) $2,685
C) $1,685
D) $685

Question

Use the information below for Adams Company to answer the questions that follow.
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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:
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  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) $456 
B) $2,685 
C) $1,685 
D) $685

Quizplus · Accepted Answer

Jobs 356 and 357 were sold at a profit of $500 on each job, so the total profit is $1000. The cost of goods sold for all four jobs is $2370 ($900 + $500 + $600 + $370). Therefore, the ending balance of Cost of Goods Sold for Adams Company at the end of the first quarter is $2370 - $1000 = $1,370. However, this answer is not listed as a choice. The closest answer is C, which is $1,685. This may be the result of rounding or discrepancies in the data.

Use the Information Below for Adams Company to Answer the Questions