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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

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4 years ago
Jacobs Company has inventory of 15 units at a cost of $12 each on June 1. On June 5, Jacobs purchased 10 units at $13 per unit.
vekshin1

Answer:

$210

Explanation:

Date    Description   Units  Price  Total Balance

1-Jun    Opening        15   $12   $180   $180  

5-Jun    Purchase      10      $13     $130          $310  

12-Jun   Purchase      20     $14     $280         $590  

17-Jun   *Sale             -30               -$380        $210  

*Working

Sale

Date          Units   Price     Total

17-Jun       -15 $12   $(180)  

                -10   $13   $(130)  

                -5   $14   $(70)  

Total Sale -30           -$380  

So, the correct answer is $210.

3 0
4 years ago
Who will be taxed in Transnet​
icang [17]

The South African Mining Industry is very crucial to it's economy. Transnet is one of it's major players. Given that it had a set budget for the 2021/22 financial year, much of which was supposed to be financed by the mining sector, unfortunately, the sector delivered a shortfall.

If Transnet had performed on its nameplate capacity of 78 million tons rather than the 58 million tons delivered in 2021, the industry would have gained R32 billion in revenue. The sector lost R16 billion in sales by failing to meet its objective of 68 million tons.

Because of the above shortfall, assuming current market prices, more than a third of the R140 billion in tax scheduled to be paid from all South African mining firms.

<h3>Who is Transnet?</h3>

Transnet SOC Ltd is a significant South African rail, port, and pipeline corporation located in Johannesburg's Carlton Centre.

It was established as a limited business on April 1, 1990. The South African government's Department of Public Enterprises, or DPE, owns the majority of the company's equity.

Learn more about South African Mining:
brainly.com/question/15581783
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2 years ago
Under SEC rule 606 of regulation NMS, broker-dealers are required to compile statistical information on routing of customer non-
Anna007 [38]

Options:

A. monthly

B. quarterly

C. semi-annually

D. annually

Answer:B. Quarterly

Explanation:SEC(security and exchange commission) is an agency established by Government to regulate the activities of companies that sale Securities,Stock markets and self-regulatory Organisations.

Security and exchange commission ensures that it puts guidelines and rules to ensure that market players do business according to the best practices devoid of criminal activities.

Security and exchange commission rule 606 of regulation NMS, broker-dealers are required to give QUARTERLY REPORT AVAILABLE TO CUSTOMERS BY COMPILING STATISTICAL INFORMATION ON ROUTING OF CUSTOMER NON-DIRECTED ORDERS TO MARKET VENUES, AND MAKE THIS INFORMATION AVAILABLE TO CUSTOMERS.

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Which of the following organizations must comply with rules and regulations established by specific government agencies to enfor
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