Answer:
Results are below.
Explanation:
Giving the following information:
Company 1:
Beginning inventory Merchandise $253,000
Cost of purchases 600,000
Ending inventory Merchandise 153,000
Company 2:
Beginning Finished goods $506,000
Cost of goods manufactured 930,000
Ending Finished goods 147,000
<u>To calculate the cost of goods sold, we need to use the following formula:</u>
<u></u>
COGS= beginning finished inventory + cost of goods manufactured/purchased - ending finished inventory
<u>Company 1:</u>
COGS= 253,000 + 600,000 - 153,000
COGS= $700,000
<u>Company 2:</u>
COGS= 506,000 + 930,000 - 147,000
COGS= $1,289,000
Answer:
The correct answer is because it determines which contracts could be voidable
Explanation:
A unilateral mistake is when just one party to a contract is mistaken as to the terms contained in a contract.
Commonly, the unilateral mistake does not make a contract void; The mutual mistake makes it.
Answer:
Manufacturing overhead rate(spending) variance= $24,000 favorable
Explanation:
Giving the following information:
Actual direct labor hours= 24,000
Octagon produced 8,000 units and incurred a variable overhead of $120,000.
The hours allowed per unit are 2. The standard variable overhead rate is $3.00 per direct labor hour.
To calculate the variable overhead spending variance, we need to use the following formula:
Manufacturing overhead rate(spending) variance= (standard rate - actual rate)* actual quantity
Actual rate= 120,000/24,000= 5
Manufacturing overhead rate variance= (6 - 5)*24,000
Manufacturing overhead rate variance= $24,000 favorable
