Asked by Vaishnavi Surnis on Jul 04, 2024
Verified
What is the balance of Sales for Adams Company at the end of the first quarter?
A) $1,685
B) $2,685
C) $1,000
D) $685
Sales
Sales refer to the total amount of goods or services sold by a company, and is a primary source of revenue in a business's income statement.
Production Jobs
Positions or roles focused on creating goods or managing the production process within a manufacturing or production environment.
Profit
The financial gain achieved when revenues generated from business activities exceed the expenses, costs, and taxes associated with sustaining the business.
- Acknowledge the significance of employing job costing, notably in the computation of gross profit, sales, and assessing the status of finished goods, work in process, and cost of goods sold for distinct jobs.
Verified Answer
SA
Stephanie AvilaJul 05, 2024
Final Answer :
B
Explanation :
Jobs 356 and 357 were sold at a profit of $500 each, which means the total sales for these two jobs is $1,000. There is no information about the sales of the other two jobs, so we can assume they were sold at cost. Therefore, the total sales for the quarter would be $1,000 (for jobs 356 and 357) plus the cost of jobs 358 and 359. Since there is no information about the cost of these two jobs, we cannot calculate the exact total sales. However, we know that the total sales must be at least $1,000, so the only possible answer is B ($2,685).
Learning Objectives
- Acknowledge the significance of employing job costing, notably in the computation of gross profit, sales, and assessing the status of finished goods, work in process, and cost of goods sold for distinct jobs.