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
Anna71 [15]
4 years ago
11

Analyzing and Computing Accrued Warranty Liability and Expense Waymire Company sells a motor that carries a 60-day unconditional

warranty against product failure. From prior years' experience, Waymire estimates that 2% of units sold each period will require repair at an average cost of $125 per unit. During the current period, Waymire sold 70,000 units and repaired 1,000 of those units. (a) How much warranty expense must Waymire report in its current period income statement? $Answer (b) What warranty liability related to current period sales will Waymire report on its current period-end balance sheet? (Hint: Remember that some units were repaired in the current period.) $Answer
Business
1 answer:
KengaRu [80]4 years ago
8 0

Answer:

a. $175,000

b. $50,000

Explanation:

a. The computation of the warranty expense is shown below:

= Given percentage × units sold × repair average cost

= 2% × 70,000 units × $125 per unit

= $175,000

b. The computation of the warranty liability is shown below:\

= (Given percentage ×  Units sold × repair average cost) - (Repaired units × repair average cost)

=  (2% × 70,000 units × $125 per unit) - (1,000 units × $125 per unit)

= (2% × $8,750,000) - ($125,000)

= $175,000 - $125,000

= $50,000

You might be interested in
Which fiscal stimulus policy will provide a greater incentive to work?
andrew11 [14]

Answer:

D.

an income tax rate cut

Explanation:

Fiscal stimulus programs are government policies aimed at accelerating growth in times of recessions. The government adjusts its spending or tax rates to influence the economy's direction. A stimulus is meant to increase output and increase income.

An income tax rate cut increases the amount of disposable income of consumers. An increase in disposable incomes boosts consumer spending, which results in increased demand. Firms in the service and manufacturing industries will respond to the rise in demand by increasing production. A rise in output creates employment opportunities.

3 0
3 years ago
Explain just in time(JIT) approach?
amm1812
<span> is an inventory </span>strategy<span> companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs.</span>
6 0
4 years ago
When a person owes more on an item (like a car or house) than it is worth, the person is said to be _________ on the loan. secur
nikklg [1K]

When a person owes more on an item (like a car or house) than it is worth, the person is said to be <u>upside down</u> on the loan.

<h3><u>Describe an upside-down loan.</u></h3>

You have an upside-down auto loan if you owe more money than the car is truly worth. You may need to make additional payments or modify your insurance coverage in order to prevent being upside-down on your loan or, at the very least, to shorten the amount of time you are in this perilous financial situation.

When you owe more on a car loan than the vehicle is worth, the loan is considered upside-down. If your car is worth $12,000 but your loan total is $15,000, for instance, your loan would be in the negative. You have $3,000 in negative equity in this situation.

It's not always a problem to have an outstanding auto loan. If you don't intend to sell your car, you can make loan payments until the balance is paid off. It won't affect the way you communicate with your lender.

Learn more about upside-down loans with the help of the given link:

brainly.com/question/24173549

#SPJ4

6 0
2 years ago
It's easier to eliminate negative self talk when we are:
Leokris [45]
I think the answer would be alone 
6 0
3 years ago
These items are taken from the financial statements of Windsor, Inc. at December 31, 2017.
nordsb [41]

Answer:

To make balance sheet we first have to calculate net income/net profit for the year.

<em><u>Net profit Calculation</u></em>

Service revenue            $ 13,524

Insurance expense        ($     718 )

Depreciation expense   ($ 4,876)

Interest expense           ($ 2,392)

Profit                              $ 5,538

<em><u></u></em>

Balance Sheet

Asset

Non-Current Asset

Land                                                            $56,304                                                            

Buildings                                                     $97,336

Accumulated depreciation—buildings      ($41,952)

Equipment                                                   $75,808

Accumulated depreciation—equipment   ($17,222)

Total non Current Asset                            $170,274

Current Asset

Cash                                                              $10,893

Accounts receivable                                    $11,592

Prepaid insurance                                         $2,944

Current Asset                                               $25,429

Total Asset                                                   $195,703

Equity

Common stock                                              $55,200

Retain Earning (36,801+5,538)                     $42,339

Total Equity                                                   $97,539

Liability

Non-Current Liability

Current Liability

Accounts payable                                           $8,740

Notes payable                                                $86,112

Interest payable                                               $3,312

Total Current Liability                                  $98,164

Total Liability + Equity                                $195,703

5 0
3 years ago
Other questions:
  • If a production possibilities frontier appears as a downward sloping straight line, which of the following occurs?
    8·1 answer
  • The classified balance sheet will show which asset subsections?
    14·1 answer
  • Samz Off-Road Rage is a motorcycle shop that caters to off-road sports. The store carries top brand off-road motorcycles, and pa
    9·1 answer
  • In the last 40 years, the number of women in the workforce has increased tremendously, and pay has also improved. In what ways i
    15·1 answer
  • Tanya Fletcher owns undeveloped land (adjusted basis of $80,000 and fair market value of $92,000) on the East Coast. On January
    5·1 answer
  • A student finds a data set on the Internet site that contains financial information about selceted companies. He plans to analyz
    8·1 answer
  • How would each of the following affect the firm's marginal, average, and
    11·1 answer
  • Your university has decided to purchase new computers for all of the computer labs on campus. Typically, the purchasing agent ne
    6·1 answer
  • Wheeler’s Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of ea
    11·1 answer
  • If Gross Domestic Product was $17 trillion in 2008 and $16 trillion in 2009. Which of the following actions would Congress be mo
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!