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spayn [35]
3 years ago
13

Boris, Inc. sells a single product for $900 per unit, including a 90-day warranty against defects. It is estimated that 3% of th

e units sold will prove defective and require an average repair cost of $70 per unit. During July, 800 units were sold. Five of them were reported defective and repaired in July. What amount should be added to the Estimated Liability for Product Warranties for July
Business
1 answer:
Dimas [21]3 years ago
7 0

Answer:

the  amount that added to estimated liability is $1,330

Explanation:

The computation of the amount that added to estimated liability is as follows

= 800 units sold × 3% defective - five defective units

= 24 units - 5 units

= 19 units

Now the amount that should be added is

= 19 units × $70 per unit

= $1,330

Hence, the  amount that added to estimated liability is $1,330

The same is to be considered

You might be interested in
On January 1, 2021, Nantucket Ferry borrowed $14,000,000 cash from BankOne and issued a four-year, $14,000,000, 6% note. Interes
kari74 [83]

Answer:

If Interest is not Paid yet

Nantucket Ferry

Dr. Interest Expense $840,000

Cr. Interest payable  $840,000

BankOne

Dr. Interest receivable $840,000

Cr.  Interest Income     $840,000

If Interest is Paid

Nantucket Ferry

Dr. Interest Expense    $840,000

Cr. Cash                        $840,000

BankOne

Dr.  Cash                       $840,000

Cr.  Interest Income     $840,000

Explanation:

Amount of interest is the expense for Nantucket Ferry and Income for the BankOne on the bond.

As per given data

Amount borrowed  = $14,000,000

Coupon rate = 6%

Interest in paid on and received on the bnd is calculated by using the face value and coupon rate of the bond.

Coupon Payment = $14,000,000 x 6% = $840,000

$840,000 will be paid annually to the Bank one.

6 0
3 years ago
Erica and Brett decide to form their new motorcycle business as an LLC. Each will receive an equal profits (loss) interest by co
KATRIN_1 [288]

Answer:

$58,500

Explanation:

The outside basis is defined as the tax basis that a partner has on the partnership. To find it, the value of all the resources contributed by the partner is taken and the debt relief and any debt assigned is subtracted. To solve this exercise, we should follow these steps:

1. Determine the contributed capital.

According to the problem statement, Brett provided cash ($ 9,500) and a building (here the value of the adjusted base, $ 39,000, is taken). Therefore, the total contributions are $48,500.

2. Calculate capital increases.

The partnership obtained a loan for $59,000, which was shared equally among the partners. Therefore, Brett received 50%, that is, $29,500.

Now, we must add the contributed capital plus capital increases:

48,500+29,500=78,000

3. Calculate mortgage debt issues.

The nonresource mortgage is 44,000, a value that exceeds the basis of the contributed property. In that case, the surplus is taxed to the contributing partner. To determine it, simply subtract the nonresource mortgage less adjusted basis of the building:

44,000-39,000=5,000

On the other hand, the remaining mortgage on the building is calculated, by dividing the value of the adjusted base of the property, in this case, 39,000 by 2, which results in 19,500.

Therefore, mortgage debt issues are equivalent to:

5,000+19,500=24,500

We add the contributed capital plus capital increases plus mortgage debt issues:

78,000+24,500=102,500

4. Subtract debts.

The partnership assumes the nonrecourse mortgage (which is computed as a debt) for 44,000. Because this component is not covered entirely by Brett, then this amount must be deducted from his individual tax base.

Therefore:

102,500-44,000=58,500

58,500 is Brett´s outside tax basis in his LLC interest.

On a balance sheet, we can see it as follows:

Particulars                                Amount in $

Cash                                                9,500

+Adjusted basis of the                39,000

building

+50% profit sharing ratio            29,500

+Nonrecourse mortgage               5,000

less adjusted basis

+Remaining mortgage on            19,500

building

TOTAL                                             102,500

-Debt on building                          (44,000)

Outside tax basis                          58,500

7 0
3 years ago
Vaughn Manufacturing incurred the following costs for 84000 units: Variable costs $504000 Fixed costs 392000 Vaughn has received
Damm [24]

Answer:

$7.8

Explanation:

Variable costs = $504,000

Fixed costs = $392,000

Number of units produced = 84,000

Shipping charges = $4,500

Therefore, the variable cost per unit is calculated as follows:

= Variable costs ÷ Number of units produced

= $504,000 ÷ 84,000

= $6 per unit

Incremental fixed cost per unit (For 2,500):

= Shipping cost ÷ 2,500

= $4,500 ÷ 2,500

= $1.8 per unit

Therefore, the unit sales price will be the sum total of variable cost per unit and incremental fixed cost per unit for the shipping charges.

BEP (in sales price per unit):

= Variable cost per unit + incremental fixed cost per unit

= $6 + $1.8

= $7.8

4 0
3 years ago
In the development of the ipad 3, it is very likely that apple will develop an initial ______ and then test its performance and
hjlf

<span>In the technological sector a new product start its live as a prototype, then the enterprise use various consumer test panel to see the reaction of the potential costumers in real time environments and check how the prototype behaves. With the information gathered from the costumers tests panels the company can make adjustments <span>improve the prototype based on the feedback of the people that actually used it and release a better final version of the product.</span></span>

4 0
3 years ago
Trumbull Corporation budgeted sales on account of $120,000 for July, $211,000 for August, and $198,000 for September. Experience
GrogVix [38]

Answer:

a. $169,800

Explanation:

As for the provided information we have,

Sales data, for each month

July              $120,000

August         $211,000

September   $198,000

Cash receipt budgeted for September shall be:

36% of sale of the month of July = $120,000 \times 36% = $43,200

60% of sale of the month of August = $211,000 \times 60% = $126,600

Thus, total expected amount = $169,800

Therefore, correct option is

a. $169,800

4 0
2 years ago
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