Final answer:
The beginning balance of Work in Process for Leelanau Corporation is $10,500. The firm's accounting profit from the self-check question is $50,000, calculated by subtracting expenses from sales revenue. To determine the best production method, costs of labor and capital must be accounted for, with the best method being the one with the lowest total cost.
Step-by-step explanation:
Understanding Job-Order Costing and Accounting Profit
The question presents a scenario where Leelanau Corporation is using a job-order costing system. The beginning balance of Work in Process is explicitly stated as $10,500. This would make the correct answer to the question (1) $10,500.
Moving on to the self-check questions regarding other business scenarios, here's how to calculate the accounting profit: A firm with sales revenue of $1 million, which spent $600,000 on labor, $150,000 on capital, and $200,000 on materials, would have an accounting profit of $50,000. This is found by subtracting the total expenses from the sales revenue (1,000,000 - (600,000 + 150,000 + 200,000)).
Looking at production methods, we calculate each method's total cost by multiplying the amount of labor and capital by their respective costs ($100/unit of labor and $400/unit of capital). For instance, Method 1 would cost (50 * 100) + (10 * 400) = $9,000. If the cost of labor rises to $200/unit, you would re-calculate the total cost for each method using the new labor cost. The best production method is the one with the lowest total cost.