Marginal productivity theory assumes that a worker’s income is a function of the contribution of that worker to the value of the output. in business, this is called the "value-added" approach.
There is a correct theory called marginal productivity theory. Wages are paid at a level equal to the marginal revenue product of labor, the MRP (value of the marginal product of labor). MRP is the increase in income caused by the increase in output produced by the last employed worker.
The marginal productivity theory of income distribution proposes that each individual should receive income based on their contribution to total output. The marginal productivity theory of income distribution has been criticized for the following reasons. Income from inheritance is inconsistent with the theory.
Learn more about Marginal revenue here: brainly.com/question/13617399
#SPJ4
Answer:
5,850 units
Explanation:
Units Incomplete at the beginning of the month:
= No. of units × 40% incomplete
= 600 units × 0.4
= 240 units
Units completed during the month:
= 6,000 - 600
= 5,400 units are completed
Units completed at the end of June:
= 700 units × 30%
= 210 units
Number of equivalent units of production for conversion cost for the period:
= 240 + 5,400 + 210
= 5,850 units
The journal entry to reflect this transaction would include a credit to T. Dole, Capital in the amount of $90,000.
<h3>
What journal entries?</h3>
- A journal entry is an act of keeping or producing records of any economic or non-economic transaction.
- An accounting journal, which shows a company's debit and credit balances, records transactions.
- The journal entry can be made up of multiple records, each of which is either a debit or a credit.
- Otherwise, the journal entry is termed unbalanced if the sum of the debits does not equal the total of the credits.
So, the journal entry to reflect this transaction would include a credit to T. Dole, Capital in the amount of cash invested, and the fair market value.
30,000 + 60,000 = $90,000
Therefore, the journal entry to reflect this transaction would include a credit to T. Dole, Capital in the amount of $90,000.
Know more about journal entries here:
brainly.com/question/14279491
#SPJ4
The complete question:
T. Dole invests cash and land into an existing partnership. The cash invested is $30,000 and the land has a fair market value of $60,000. The journal entry to reflect this transaction would include a credit to T. Dole, Capital in the amount of $ ______.
Answer:
khsusbxndkskxcndkzkzkeond