Asked by Kayla Renay on May 02, 2024
Verified
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
Cost of Goods Sold
The expenses directly related to creating a company's sold goods, covering both material costs and wages.
Production Jobs
Tasks or operations involved in the creation or manufacturing of goods.
Profit
The financial gain achieved when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain these activities.
- Comprehend the critical role of job costing, which includes calculating gross profit, sales, and evaluating the status of finished goods, work in process, and cost of goods sold for specific assignments.
Verified Answer
RV
Rodney V TLEMay 09, 2024
Final Answer :
C
Explanation :
Since the only jobs that were completed and not sold were Jobs 358 and 359, their total cost would be added to the cost of goods sold. The question does not provide information on the cost of these jobs, but we can safely assume that it is more than the $1,500 in profit earned from Jobs 356 and 357. Therefore, the ending balance of Cost of Goods Sold would be greater than $1,500 and the only answer choice that reflects that is C.
Learning Objectives
- Comprehend the critical role of job costing, which includes calculating gross profit, sales, and evaluating the status of finished goods, work in process, and cost of goods sold for specific assignments.