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:
Balance
Job 356
$ 450
Job 357
$1,235
Job 358
$ 378
Job 359
$ 689
Job 360
$ 456
Job 356, 357, 358 & 359 were completed. Jobs 356 & 357 were sold at a profit of $500 on each job.
What is the ending balance of Cost of Goods sold for Zeke Company as of the end of the 1st quarter?
Answer
$456
$2,685
$1,685
$685
456
1685
2752
To find the ending balance of Cost of Goods sold for Zeke Company, we need to calculate the total cost of the completed jobs and subtract the profits from the sold jobs.
First, let's calculate the total cost of the completed jobs. We add up the costs of jobs 356, 357, 358, and 359:
Job 356: $450
Job 357: $1,235
Job 358: $378
Job 359: $689
Total cost = $450 + $1,235 + $378 + $689 = $2,752
Next, we need to subtract the profits from the sold jobs. Jobs 356 and 357 were sold at a profit of $500 each, so we subtract $500 from the total cost twice:
$2,752 - $500 - $500 = $1,752
Therefore, the ending balance of Cost of Goods sold for Zeke Company as of the end of the 1st quarter is $1,752.
Therefore, the correct answer is $1,752.