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Law Incorporation [45]
3 years ago
15

Wright Company sells merchandise with a one-year warranty. This year, sales consisted of 2,000 units. It is estimated that warra

nty repairs will average $15 per unit sold, and 30% of the repairs will be made this year and 70% next year. In this year's income statement, Wright should show warranty expense of?
Business
1 answer:
Marianna [84]3 years ago
7 0

Answer:

$ 30,000.00

Explanation:

The cost of warranty is expensed the same period the sale is made.  Warranty can be estimated, and expensing them together with sale matches a sale and its relevant cost.

<u>In this case: </u>

Estimated warranty @ $15 dollar per unit sale

total unit sold =2000

Warranty amount = $15 x 2000

   =$ 30,000.00

To be expensed when the sale is made

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What is a budget for major investment expenditures called?
12345 [234]
Capital budget is the budget for major investment expenditures. Capital budgeting is the process of planning whether a certain investment will be a long term investment or a short term investment.  Expenditure is the amount of money spent for a certain investment.
5 0
4 years ago
Christiansen and Sons' flexible budget for 10,000 units of production includes $50,000 for direct materials, $44,000 for direct
kenny6666 [7]

Answer:

Direct materials of $60,000, direct labor of $52,800, utilities of $6,000, and supervisor salaries of $15,000.

Explanation:

For 10,000 units:

Direct materials (DM) = $50,000

Direct labor (DL) = $44,000

Utilities (U) = $5,000

Supervisor salaries (S) = $15,000.

For 12,000 units:

Direct materials (DM):

DM=\$50,000*\frac{12,000}{10,000}\\DM = \$60,000

Direct labor (DL):

DL=\$44,000*\frac{12,000}{10,000}\\DL = \$52,800

Utilities (U) = $5,000

U=\$5,000*\frac{12,000}{10,000}\\U = \$6,000

Supervisor salaries (S) = $15,000.

Salaries don't rely on production volume and, thus, should stay the same.

5 0
3 years ago
Resorts Corp. common stock is selling for $36.75 a share and has a dividend yield of 2.3 percent. What is the dividend amount?
7nadin3 [17]

Answer:

Annual Dividend Amount is approximately $0.85

Explanation:

Dividend yield = Annual Dividend Amount / Current selling price

∴ Dividend yield * Current selling price = Annual Dividend Amount

Annual Dividend Amount = $36.75 * 2.3%

                                          =$36.75 * 0.023

                                          =$0.84525‬

Annual Dividend Amount = $0.85 (approximately)

8 0
3 years ago
Read 2 more answers
8. Who are the top two export partners of the United States?
pshichka [43]
D. Mexico and China

The biggest U.S. trade partners include China, Canada and Mexico.
7 0
3 years ago
The Grondas, who owned a party store along with land, fixtures, equipment, and a liquor license, entered into a contract to sell
Harman [31]

Answer:

No the suit will not succeed as their is no agreement

Explanation:

The contract was conditional contract. As the condition explicitly said that, the right to agree on terms and conditions is explicitly attorney's right. When the attorney has not agreed on the terms and conditions of Harbor Park, the company hasn't formed any contract. Furthermore, there is no limitation on Grondas to consider other available options and attorney is also not obliged to agree to Harbor's offer.

Thus the suit that says Grondas has breached the contract is meaningless and will not succeed in the court.

8 0
3 years ago
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