Zeke Company is a manufacturing company that has worked on several production jobs during the 1st quarter of the year. Below is a list of all the jobs for the quarter:

Job 356, 357, 358 & 359 were completed.

Jobs 356 & 357 were sold at a profit of $500 on each job.
What is the ending balance of Finished Goods for Zeke Company as of the end of the 1st quarter?

Question

Zeke Company is a manufacturing company that has worked on several production jobs during the 1st quarter of the year. Below is a list of all the jobs for the quarter:

Job 356, 357, 358 & 359 were completed.

Jobs 356 & 357 were sold at a profit of $500 on each job.
What is the ending balance of Finished Goods for Zeke Company as of the end of the 1st quarter?

Quizplus · Accepted Answer

Since Jobs 356 and 357 were sold at a profit of $500 each, Zeke Company earned a total profit of $1000. Therefore, the cost of goods sold (COGS) for these two jobs combined was $2000.

To calculate the ending balance of Finished Goods, we need to add the total cost of all completed jobs (356, 357, 358, and 359) and subtract the COGS of completed jobs (356 and 357):

Total cost of completed jobs = cost of Job 356 + cost of Job 357 + cost of Job 358 + cost of Job 359 
= $2,200 + $1,800 + $1,500 + $2,400 
= $8,900

COGS of completed jobs = $2,000

Ending balance of Finished Goods = $8,900 - $2,000 = $6,900

Therefore, the correct answer is B) $1,067.

Zeke Company Is a Manufacturing Company That Has Worked on Several