Question

Use the information below for Adams Company to answer the question that follow. Adams Company is a manufacturing company that has worked on several production jobs during the first quarter of the year. Below is a list of all the jobs for the quarter: Job. No. Balance 356 $ 450 357 1,235 358 378 359 689 360 456 Jobs 356, 357, 358, and 359 were completed. Jobs 356 and 357 were sold at a profit of $500 on each job. What is the ending balance of Work in Process for Adams Company at the end of the first quarter? a.$456 b.$2,752 c.$0 d.$3,208

Answer 1

Answer:

a.$456

Explanation:

The computation of the ending balance of the work in process is shown below:

= Job 360

= $456

Since it is given that Jobs 356, 357, 358, and 359 were completed and the Jobs 356 and 357 were sold at a profit of $500 on each job. There is no information given for Job 360 so we assume that the Job 360 is still in process that reflects the ending balance of the work in process which is still processing