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
AlexFokin [52]
3 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]3 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

You might be interested in
Assume that a firm reports net income of $45,000 prior to making adjusting entries for the following items: expired rent, $3,500
tigry1 [53]

Answer:

The errors have resulted in the overstatement of net income by $9,400. Actual net income is $35,600

Explanation:

Expired rent is usually accounted for by debiting rent expense and crediting prepaid rent account. As such this is an additional expenses that will be deducted from sale to get the net income.

Depreciation expense on asset is recorded by debiting depreciation expense and crediting accumulated depreciation. Again, it is an additional expenses that will be deducted from sale to get the net income.

Supplies used is a debit to supplies expense and a credit to the supplies account (B/s). Hence, it is an additional expenses that will be deducted from sale to get the net income.

Hence the total additional expense to be recorded

= $3,500 + $4,100 + $1,800

= $9,400

When recorded, net income

= $45,000 - $9,400

= $35,600

3 0
2 years ago
randy and debbie are in charge of training new marketing department employees at company abc. in a training session, debbie comm
andrezito [222]

A SWOT analysis looks at both internal and external factors that help or hurt your company's operations.The following four categories of factors are the primary focus of this strategy:Strengths: Your business model's best features and most persuasive selling points

The Greek letter epsilon stands for which of the following: profit cost, error elasticity, or

The quantity decrease proportional to a small price increase is known as the elasticity of demand and is typically denoted by the Greek letter epsilon.The elasticity of demand is one minus the percentage change in total revenue caused by a 1% price change.

In-store displays are one of the most prevalent types of trade sales promotion.The fact that it establishes a personal connection with your potential customers makes this the obvious choice for increasing sales.Displays in stores are a great way to promote a product by making it easy for customers to see and buy it.

Learn more about SWOT analysis here:

brainly.com/question/21306560

#SPJ4

4 0
11 months ago
Adverse selection occurs in the market for used cars because used car buyers ______
umka2103 [35]
Have less information than used car sellers
4 0
2 years ago
Snowden Industries produces two electronic decoders, P and Q. Decoder P is more sophisticated and requires more programming and
Rainbow [258]

Answer:

Using Direct Labour hours;

The cost per unit for Decoder P=$5.76

The cost per unit for Decoder Q=$5.76

Using Activity based costing;

The cost per unit for Decoder P=$7.48

The cost per unit for Decoder Q=$5.01

Explanation:

A)Total Overhead cost= $275,000

Total Labour Hours=22,000

P Total Overhead  =6,600/22,000*$275,000=$82,500

Overhead cost per unit=$82,500+$31,680/19,800units=$5.76

Fixed cost=$105,600

19800/66000*$105,600=$31,680

Q Total overhead  =15,400/22,000*$275,000=$192,500

Overhead cost per unit=$192,500+$73,920/46,200units=$5.76

Fixed cost=$105,600

46,200/66000*$105,600=$73,920

B)Using activity based costing;

Total Overhead cost= $275,000

Repair and Maintenence Cost = $105,600

Total Labour Hours=22,000

P Overhead  =6,600/22,000*$275,000=$82,500

Overhead cost perunit=$82,500/19,800units=$4.16

P Activities overhead=(2000+190+1400)/5750*$105,600=$65,931.13

Activity cost per unit=$65,931.13/19,800units=$3.32

Total Overhead cost =$4.16+$3.32=$7.48

Q Total overhead  =15,400/22,000*$275,000=$192,500

Overhead cost per unit=$192,500/46,200units=$4.16

Q Activities overhead=(1000+60+1,100)/5750*$105,600=$39,668.87

Activity cost per unit=$39,668.87/46,200units=$0.85

Total Overhead cost =$4.16+$0.85=$5.01

4 0
3 years ago
An adult with a developmental disability works at a local product fulfillment and distribution center. She takes the bus to get
harkovskaia [24]

Answer: Tracking and identification.

Explanation: In other ease the woes and stress of such individual, integrating a tracking and identification capability on her app will be of great help. This will ensure that she could be easily and effectively located by leveraging the ability of the geographic positioning system in other to correctly get and know are current location. With these she could be picked easily when issues of drops off at the wrong location. Trackers allows one to determine the current location of items or individuals in which the tracking devices are placed on. As it also gives signals when one gets to the current position of the item or individual for proper identification. With these locating her will become very easy and hassle free during instances of wrong drop off.

7 0
3 years ago
Other questions:
  • Which of the following is part of the R&D process?
    9·2 answers
  • Loyal customers are price _____________ compared to brand-shifting patrons.
    7·1 answer
  • A borrower had a loan of $ 30 comma 000.00 at 6 % compounded annually comma with 8 annual payments. Suppose the borrower paid of
    7·1 answer
  • An economy is created by the interaction between which teo groups of people?
    6·1 answer
  • Arthur is a 30 percent partner in the CAR Partnership. At the beginning of the tax year, Arthur's basis in the partnership inter
    11·1 answer
  • Two countries, cadmia and palladia, have formed a free trade agreement. this has resulted in cadmia importing sugar from palladi
    5·1 answer
  • Lenore, a single California taxpayer, has taxable income before capital gains of $78,000 and a long-term capital gain of $5,000
    8·1 answer
  • To increase and improve employees' work efforts in organizations, organizations should link ________ to ________ such as bonuses
    7·1 answer
  • In a command economy, which group is most responsible for producing the
    13·1 answer
  • A stock dividend ______. (Check all that apply.) Multiple select question. causes retained earnings to decrease. increases a sto
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!