Answer:
C) Cost of Goods Available for Sale
Explanation:
Cos of goods available for sale appears in income statement made under periodic Inventory system but it does not in the income statement made under perpetual inventory system. In per periodic system COGS is calculated by adjusting purchases, allowances for purchases, freight and all other cost to cost of goods available for sale. By deducting closing inventory we calculate the COGS. On other hand in perpetual system purchases are added in the opening and purchase return and closing inventory deducted to reach at COGS.
Voluntary exchange, or the law against stealing. A voluntary exchange is one of the hallmarks of a free market. Stealing is the taking of goods against another's will, or involuntarily.
Answer:
The predetermined overhead rate was $7.84
Explanation:
Predetermined overhead rate is calculated by dividing the Expected overhead by the Expected level of activity on which the overhead is applied. It is a rate at which the overhead is applied to a product / project/ department.
Predetermined overhead rate = Expected overhead / Expected activity
Predetermined overhead rate = Expected overhead / Expected direct labor hours
Predetermined overhead rate = $1,490,000 / 190,000
Predetermined overhead rate = $7.84 per labor hour
