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 Sales 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 Sales for Zeke Company as of the end of the 1st quarter?

Quizplus · Accepted Answer

The company sold jobs 356 & 357 at a profit of $500 on each job. Therefore the total profit from these two jobs is $1000.
Sales = Profit + Cost
Assuming that the cost of producing Job 356 & 357 was the same, let's estimate the cost to $1000 ($500 for each job).
Thus the total cost of producing all four jobs (including 356 & 357) is $3000.
Therefore, Sales = $1000 (Profit from 356 & 357) + $3000 (Cost of all four jobs) = $4000.
Thus the Sales for Zeke Company as of the end of the 1st quarter is $2,685 (Option B).

Zeke Company Is a Manufacturing Company That Has Worked on Several