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Lelu [443]
3 years ago
15

Sage Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $384,300. The estimated fair val

ues of the assets are land $73,200, building $268,400, and equipment $97,600. At what amounts should each of the three assets be recorded
Business
1 answer:
maria [59]3 years ago
3 0

Answer: See explanation

Explanation:

The following can be calculated from the information given:

Total Asset Fair Value which will be:

= Land + Building + Equipment

= 73200 + 268400 + 97600

= $439200

Recorder Amount will now be:

Land = 73200 / 439200 × 384300

Land = 64050

Building = 268400 / 439200 × 384300

Building = 234850

Equipment = 97600 / 439200 × 384300

Equipment = 85400

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Answer:

B) Rearrange the production floor.

Explanation:

First step is to calculate the manufacturing labor costs for the Current operations and new proposal

Calculation for the manufacturing labor costs for the Current operations

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Current operations manufacturing labor costs = $84,000

Calculation for the manufacturing labor costs for the new proposal

New Proposal manufacturing labor costs=4.5 workers *2,000 hours * $9.00

New Proposal manufacturing labor costs = $81,000

Based on the above calculation the decisions that the management should accept is to REARRANGE THE PRODUCTION FLOOR if they want to reduce the company manufacturing labor costs reason been that the manufacturing LABOR COSTS for the current operations is $84,000 which means it is higher than the manufacturing LABOR COST for the new proposal which is $81,000

Therefore the management should REARRANGE THE PRODUCTION FLOOR because with the new proposal manufacturing labor costs will reduce.

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