Question

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: Balance Job No. 356 $ 450 Job No. 357 1,235 Job No. 358 378 Job No. 359 689 Job No. 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 gross profit for Adams Company at the end of the first quarter?

Answer 1

Answer:

The gross profit for Adams Company at the end of the first quarter is $1,000

Explanation:

Since in the question it is given that Job 356 and Job 357 is sold at a profit of $500 each. So, for these two the gross profit would be

= Job 356 profit + Job 357 profit

= $500 + $500

= $1,000

The Jobs 356, 357, 358, and 359 were completed which means Job No 360 is in work in process , and Job 358,359,360 have no profit that means they are in the inventory whereas Job 356 and 357 are in sale part.

Therefore, the gross profit for Adams Company at the end of the first quarter is $1,000