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AlexFokin [52]
4 years ago
6

During Year 1, Fox Co. introduced a new product carrying a two-year warranty against defects. The estimated warranty costs relat

ed to dollar sales are 2% within 12 months following the sale and 4% in the second 12 months following the sale. Sales and actual warranty expenditures for the years ended December 31, Year 1 and Year 2, are as follows: Actual Sales - Warranty Expenditures Year 1 - $ 150,000 - $ 2,250 Year 2 - 250,000 - 7,500 $ 400,000 - $ 9,750 What amount should Fox report as estimated warranty liability in its December 31, Year 2, balance sheet?a. $ 2,500
b. $ 4,250
c. $11,250
d. $14,250
Business
1 answer:
Olin [163]4 years ago
6 0

Answer:

D) $14,250

Explanation:

In order to determine the total warranty liability that Fox must report in its December 31, 2014, balance sheet, we must multiply the total sales for both 2013 and 2014 by the estimated warranty expenses and then subtract the incurred warranty expenses:

  • total sales during 2013 and 2014 = $150,000 + $250,000 = $400,000
  • estimated warranty expenses = 2% + 4% = 6%
  • incurred warranty expenses = $2,250 + $7,500 = $9,750

warranty liability = ($400,000 x 6%) - $9,750 = $24,000 - $9,750 = $14,250

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GuDViN [60]

Answer:

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c.Dr Supplies 600

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e.Dr Office Equipment$1,100

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Explanation:

8 0
3 years ago
Tommy is from a small town and quit high school to get married. He and his wife have five kids, and his wife stays home with the
mario62 [17]

Answer: d. Cross train the employees in the meat department, so beef cutters can learn how to cut pork and vice versa.

Explanation:

Since the quality of Tommy’s work has not suffered, but the store managers can tell that he is getting bored, the thing that could be done to keep him better engaged is to cross train the employees in the meat department, so beef cutters can learn how to cut pork and vice versa. Cross training helps the workers in the company appreciate the workers of others in other department and shows workers flexibility.

3 0
3 years ago
What is a saturated market like for sellers? A. Consumer demand is higher. B. It contains more available consumers. C. It is mor
mestny [16]
Hello,

The answer should be option D "<span>It encourages companies to produce more of the product".

Reason:

A saturated market is a product that is distributed which means companies would have to make more of that product in order to make money, and to have more consumers buy their products. The answer is not option A because the consumer will demand more of the product but not to be higher. Its not option B because the product is being distributed among people but not different consumers. Its also not option C because its not against other markets. Therefore the answer is option D.

If you need anymore help feel free to ask me!

Hope this helps!

~Nonportrit </span>
4 0
4 years ago
Read 2 more answers
How can you fix the current finance decisions so that we are in a healthy cash position at the end of the year?
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If we want us to be in a healthy cash position at the end of the year then we have to ensure that there will be less long term debt and more investments at that time in our balance sheet.

Given that we want us to be in a healthy cash position at the end of the year.

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A cash position basically represents the amount of cash that a company, investment fund, or bank has on its books at a specific point in time.

If we want us to be in a healthy cash position at the end of the year then we have to ensure that there will be enough investments in our balance sheet and less debt.

Hence if we want us to be in a healthy cash position at the end of the year then we have to ensure that there will be less long term debt and more investments at that time in our balance sheet.

Learn more about balance sheet at brainly.com/question/1113933

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7 0
1 year ago
Read 2 more answers
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masya89 [10]

Answer:

B, 195750

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So we allocate 13.5 in manufacturing overhead per direct labor hour

Let's the mulitply this by the number of actual direct labor hours

14500*13.5=195750

6 0
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