Novak Enterprises reported cost of goods sold for 2020 of $1,338,800 and retained earnings of $5,268,500 at December 31, 2020. Novak later discovered that its ending inventories at December 31, 2019 and 2020, were overstated by $114,680 and $34,830, respectively.
etermine the corrected amounts for 2020 cost of goods sold and December 31, 2020, retained earnings

Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.