Examlex

Solved

Chris,Miller,and Kacy Created a Limited Liability Company by Filing the Articles

question 21

Essay

Chris,Miller,and Kacy created a limited liability company by filing the articles of organization,appointing a statutory agent,and paying the appropriate filing fee.They also agreed to run the LLC themselves,making it a member-managed LLC.Chris entered an agreement whereby he purchased 1,000 barrels of oil.Neither Miller nor Kacy believe that Chris paid a good price for the oil.Nevertheless,Chris argues that the LLC is bound by the contract he entered.Is Chris correct? Explain.


Definitions:

Conversion Costs

The combined costs of direct labor and manufacturing overhead, which are incurred to convert raw materials into finished products.

Assembly Department

The assembly department is a specific division within a manufacturing facility where components are assembled into finished goods.

Weighted-Average Method

A cost accounting technique that assigns the same average cost to both ending inventory and the cost of goods sold.

Process Costing System

An accounting system used to calculate the cost of a product at various stages of production, commonly used in industries that produce homogeneous goods.

Related Questions