1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Colt1911 [192]
3 years ago
11

During 2016 Green Thumb Company introduced a new line of garden shears that carry a two-year warranty against defects. Experienc

e indicates that warranty costs should be 2% of net sales in the year of sale and 3% in the year after sale. Net sales and actual warranty expenditures were as follows:
Net
sales Actual warranty expenditures
2016 $ 45,000 $ 1,000
2017 120,000 3,500

At December 31, 2017, Green Thumb should report as a warranty liability of:

a.$900

b.$1,250

c.$3,750

d.$4,500
Business
1 answer:
mojhsa [17]3 years ago
4 0

Answer:

c. $3,750

Explanation:

Green Thumb Company provides two years warranty for any product defect. The provision needs to be made for the warranty expense and it should be reported in the balance sheet as warranty liability. The company budgets the warranty expense to be 2% in year of sales which is $2,400 ($120,000 * 2%) and 3% in the year after sale which is $1,350 ($45,000 * 3%). The total warranty liability for the year 2017 which will be reported at December 31, 2017 is $3,750.

You might be interested in
3
iris [78.8K]

None of the options shows an alternative Tina has, a real alternative would be a credit card and cash ($190)

In economics, an alternative is an element that replaces or substitutes another. For an element to be considered an alternative it needs:

  • To belong to the same category or have the same function.
  • To be possible for the user to replace the first element using the alternative.

Based on this, let's analyze each of the options:

  • Jacket and $100: These are not alternatives because Tina wants a jacket and this product cannot be replaced with money as money will not protect Tina from cold weather.

  • Shoes and a jacket: These are not alternatives because Tina wants the two products not only one.

  • Credit card and $100: These would be alternatives if the total cost was $100. However, using a credit card Tina can pay for both products but using $100 she can only pay for one of the products.

Therefore, the options do not present alternatives; but one valid alternative is a credit card and $190.

Learn more in

7 0
3 years ago
Mccaskell corporation's relevant range of activity is 7,000 units to 11,000 units. when it produces and sells 9,000 units, its a
vodka [1.7K]

Answer:

$79,600

Explanation:

Calculation for what the total amount of direct manufacturing cost incurred will be :

Direct material $50,400

(8,000 x $6.30)

Add Direct labor $29,200

(8,000 x $3.65)

Total Direct cost $79,600

Therefore the total amount of direct manufacturing cost incurred is closest to: $76,600

3 0
2 years ago
Somerset Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $24 per unit. The
blsea [12.9K]

Answer:

Variable factory overhead = 3.00

Fixed factory overhead = 1.80

Explanation:

See the table in the attached image

6 0
2 years ago
The Sarbanes-Oxley Act was created in response to corporate accounting scandals in the early 21st century to reform the accounti
Firlakuza [10]

Answer:

The answer is "Option A"

Explanation:

In this Act, the U.S. Congress in 2002 to financing offers against the risk of corporate accounting fraud. To enhance account statements on firms as well as reduce financial crimes, its Sarbanes Oxley Act (SOX) authorized information pertinent.

  • The SOX has been introduced in the early 2000s throughout responding to its accounting irregularities.
  • The Shareholder commitment within financial reports has been shattered by controversies in everything from Enron, Tyco, and WorldCom and a rewrite in regulatory requirements.
5 0
3 years ago
Fuhremann Co. is a full-service manufacturer of surveillance equipment. Customers can purchase any combination of equipment, ins
Eddi Din [679]

Answer:

Equipment transaction price is $72,000

Installation transaction price $5,600

Training transaction price is $2,400

Explanation:

The transaction price of $80,000 should be allocated to the equipment,installation and training based on the individual stand-alone prices of each as calculated below:

Transaction price of an item=transaction price*item stand-alone price/total of stand-alone prices

transaction price is $80,000

total stand-alone prices=$90,000+$7000+$3000

                                      =$100,000

Equipment transaction price=$80,000*$90,000/$100,000

                                               =$72,000

Installation transaction price=$80,000*$7000/$100.000

                                               =$5,600

Training transaction price=$80,000*$3000/$100,000

                                          =$2,400

8 0
3 years ago
Other questions:
  • Greentech is launching a line of miniature solar chargers for laptops, cellphones, and other electronic devices. The chargers ar
    15·1 answer
  • If a good is both excludable and nonrival in consumption, then it is
    5·1 answer
  • Cost predictions should be confined to the relevant range, which is the range of activity expected for the organization. If the
    14·1 answer
  • What is one reason why a business owner might choose a for-profit business over a nonprofit business?
    10·1 answer
  • Patterson Lawn Co. wants to determine the cost of each lawn care maintenance job. The Company has two operating departments, one
    10·1 answer
  • What can participation in school activities reveal about<br> your self?
    15·1 answer
  • Which of the following is true?Select one:a. Overhead costs are often affected by many issues and are frequently too complex to
    9·1 answer
  • The Medicare Supplement Right of Return Provision (Free Look Period) allows the buyer a period of ________ to return a policy an
    10·1 answer
  • At the beginning of 2017, Wertz Construction Company changed from the completed-contract method to recognizing revenue over time
    6·1 answer
  • Your creditworthiness is measured by a number called a.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!