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Salsk061 [2.6K]
3 years ago
6

Astor Manufacturing stores hazardous and volatile chemicals in its warehouse. The warehouse has state-of-the-art equipment to ma

ke sure the chemicals do not explode. An unexpected earthquake shakes the warehouse, causing the chemicals to explode and injure William, a passerby on a nearby sidewalk. Astor Manufacturing is ___________.A. liable to Will only if the company was grossly negligent
B. not liable to Will because it satisfied its duty to passerbys
C. strictly liable for Will's injuries
D. not liable to Will because Jason voluntarily assumed the risk of injury
Business
1 answer:
Wittaler [7]3 years ago
6 0

Answer:

C. strictly liable for Will's injuries

Explanation:

In law, Strict liability is a situation when defendant is required to be responsible to a certain situation, but can't be considered as guilty to any violation.

There are two points that need to be highlighted from the case above:

1.  Astor Manufacturing process has fulfilled all of its safety regulation for storing the dangerous product.

2. The dangerous product owned by Astor Manufacturing caused William's injury.

The regulations for hazard management is created by the government, and the leak is not caused by their negligence. It's caused by unexpected natural disaster.  This is why we can't say that Astor is guilty to any violation.

But still, the chemical that they created injured William. The court will most likely force Astor to be responsible for all the medical expenses incurred by william.

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Journal entry

1. Dr Material 80000

                    Cr Accounts payable 80000

         (Purchase material on account)

2. Dr Work in process 4000

                       Cr Material   4000

        (issue material)

3. Dr Material   56000

                     Cr Accounts payable  56000

( Purchase material on account)

4. Dr Accounts payable  80000

                                    Cr Cash 80000

(Paid cash of material purchase)

5. Dr Work in process 68000

                          Cr Material  68000

( Issued material to production)

6. Dr Work in process  100000

                              Cr Wages payable  100000

    (Direct labor incurred)

7. Dr Factory overhead 106000

                  Cr Cash                  106000

( Paid cash on account of factory overhead)

8. Dr Work in process (100000*125%) 125000

              Cr Applied factory overhead             125000

( To record applied factory overhead)

9. Dr Factory overhead  50000

                             Cr Accumulated depreciation 50000

( To record depreciation on plant and equipment)

T-account

Cash                                                                             Material

Dr___________Cr__                                            __ DR ___________CR

                                                                                   148200     ---

           ---80000                                                          80000   ----    4000

          ---106000                                                            56000 ---

                                                                                                         -- 68000

Work in process                                                              Accounts payable

Dr____________Cr___                                          ___ DR ___________Cr                                                                                                        

33000 ---

4000---                                                                              80000        --  80000

68000--                                                                                               -- 56000

100000---

125000 ---

Wages payable                                                          Factory overhead

Dr ____________Cr__                                          __ Dr _____________Cr

            ---  100000                                                  106000 --

                                                                                50000 --

Applied factory overhead                                    Accumulated depreciation

Dr_____________Cr__                                          _ Dr ___________Cr_

          ---   1250000                                                                ---   50000

Finished goods                                                    Cost of goods sold

Dr_____________Cr__                                          _ Dr ___________Cr_

166000     ---                                                                         ---     263400

                ---   143200  

Material end =?  

Material (end) = 148200 +80000+56000-4000-68000=

Work in process (end) = ?

work in process  = 148200+166000-143200 =171000                                                                                

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