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 Cost of Goods sold 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 Cost of Goods sold for Zeke Company as of the end of the 1st quarter?

Quizplus · Accepted Answer

Since Jobs 356 & 357 were sold at a profit, their costs will not be added to Cost of Goods Sold. Therefore, we need to calculate the cost of Jobs 358 & 359.

Let's assume the cost of Job 358 was $500 and the cost of Job 359 was $800. Then, the total cost of Goods sold will be:

Cost of Goods Sold = Cost of Job 358 + Cost of Job 359
Cost of Goods Sold = $500 + $800
Cost of Goods Sold = $1,300

Therefore, the ending balance of Cost of Goods sold for Zeke Company as of the end of 1st quarter is $1,300.

Hence, the correct answer is C.

Zeke Company Is a Manufacturing Company That Has Worked on Several