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
ob 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 ending balance of Work in Process for Adams Company at the end of the first quarter?
a. $3,208
b. 50
c. $456
d. $2,752
Ans. Option C $456
Explanation: Job no. 356, 357, 358 and 359 have been completed so nothing pending as work in process inventory.
But, Job 360 is still incomplete, so only this job would be considered as ending balance inventory of work in process.
Adams Company is a manufacturing company that has worked on several production jobs during the first quarter of the year