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PIT_PIT [208]
3 years ago
12

Waymire Company sells a motor that carries a 60-day unconditional warranty against product failure. From prior years' experience

, Waymire estimates that 3% of units sold each period will require repair at an average cost of $100 per unit. During the current period, Waymire sold 73,000 units and repaired 1,000 units.
(a) How much warranty expense must Waymire report in its current period income statement?(b) What warranty liability related to current period sales will Waymire report on its current period-end balance sheet?
Business
1 answer:
MA_775_DIABLO [31]3 years ago
3 0

Answer: Income statement $100,000

Balance sheet warranty liability $Nill

Explanation:

Since we are at the end of the period and all activities has been concluded with no expectation of claim of repairs. The firm will only record the cost incurred for current period on repairs which is $100,00 ( $100*1000) . The liability will be zero since the company has taken care of all repairs for the period.

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A school's band members raised money by selling magazine subscriptions and shirts. Their profit from selling shirts was $\$5$ pe
Savatey [412]

Answer:

They sold 40 shirts and 40 magazine subscriptions.

Explanation:

profit per shirt = $5

set up costs = $40

profit per magazine = $4

S = shirts

C = setup costs

M = magazine

5S - C = 4M

S = M so we replace

5S - 40 = 4S

5S - 4S = 40

S = 40

They sold 40 shirts and 40 magazine subscriptions.

7 0
3 years ago
Research and development costs should be: A. Expensed in the period incurred. B. Expensed in the period they are determined to b
Vladimir79 [104]

Answer:

The correct answer is letter "A": Expensed in the period incurred.

Explanation:

Research and Development (R&D) costs are spent on the development of new products that could or could not end up being commercially offered. These kinds of costs are usually expensed at the same time they are incurred. According to the U.S. Statement of Financial Accounting Standards, the R&D costs cannot be capitalized.

6 0
3 years ago
Flagstaff Company has budgeted production units of 9,000 for July and 9,200 for August. The direct labor requirement per unit is
Aleonysh [2.5K]

Answer:

the  total cost of direct labor budgeted for the month of August is $101,200

Explanation:

The computation of the total cost of direct labor budgeted is shown below:

Direct labor cost is

= 9,200 ×  .50 hours × $22 per hour  

= $101,200

Hence, the  total cost of direct labor budgeted for the month of August is $101,200

The same should be relevant

3 0
3 years ago
Genetic Innovations, LP, is a limited partnership. The partners sign an agreement purporting to state how the firm’s profits and
Gnom [1K]

Answer:

a. according to the agreement.

Explanation:

Profits or losses, made by a partnership firm shall be divided among its partners in accordance with terms specified in the agreement.

However, in absence of any written or oral agreement among the partners, profits and losses shall be distributed equally among the partners.

6 0
3 years ago
In a SWOT analysis, which of the following is an example of a threat? A. A low quality product B. Bad customer service C. Compet
Morgarella [4.7K]
In a SWOT stands for: Strength, Weakness, Opportunity and Threat. SWO are internal factors while T is an external factor. So if you look at your choices, products, customers and employees are internal and only one is external, which is Competing companies.

The answer is C. 
3 0
3 years ago
Read 2 more answers
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