Estimated warranty liability ending balance

Assignment Help Financial Accounting

Reference no: EM131266400

Alpha Company sells widgets for $35 each. The widget has a one year warranty. Alpha estimates that 6% of the widgets will require repair during the warranty period. The estimated average repair cost is $4.30 per widget. On July 31, the Estimated Warranty Liability account had a normal balance of $25,000. During August, sales were $70,000. During August, 470 widgets were repaired under the warranty agreement with an actual cost of $4.50 each. Use this information to determine:

The August 31 Estimated Warranty Liability ending balance

The August Warranty Expense

Spell check

Reference no: EM131266400

Questions Cloud

What is the net realizable value of accounts receivable : Coco Corp. has the following selected account balances as of 12/31/Year5: Cash $13,500 Accounts receivable $128,000 Allowance for uncollectible accounts $12,000 (NORMAL, credit balance- a negative asset) Inventory $38,000 The first transaction of Yea..

Bad debt expense for on the income statement : Ortiz Inc. has the following balances before doing adjusting entries for the year ended 12/31/Year6. All sales were on credit (and were recorded earlier in the period.). What will Ortiz Inc. report as bad debt expense for on the income statement for ..

What were odonnel''s write-offs during year : Odonnel Inc. had the following account balances for Year4 and Year3. 12/31/Year4 12/31/Year3 Accounts receivable (balance in the account, not net) 82,400 65,700 Allowance for doubtful accounts (normal, credit, negative asset balance) 5,870 3,460 Bad ..

Uses the periodic inventory method : Carstow uses the periodic inventory method. (In the periodic method it is assumed that all sales occur the last day of the accounting period - or after all purchases during the period.) Carstow had the following inventory transactions in May, of the ..

Estimated warranty liability ending balance : Alpha Company sells widgets for $35 each. The widget has a one year warranty. Alpha estimates that 6% of the widgets will require repair during the warranty period. The estimated average repair cost is $4.30 per widget. The August 31 Estimated Warran..

Part of the unearned subscriptions revenue related : On July 1, 2016, Alpha Company, a world famous international monthly food publication, sold 1,000 two-year subscriptions to their highly demanded monthly magazine. Use this information to determine what amount should be reported on Alpha Company's De..

Additional paid in capital in excess of par common stock : On January 2, 2016, Alpha Corporation's initial capital stock transaction consisted of an issuance of 5,000 shares of $5 par value common stock, for $60 per share. On June 30, 2017 another 10,000 shares were authorized to be issued. Common Stock. Add..

Operating income for eliminating this business segment : Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $3,000. The division sales for the year were $1,044,000 and the variable costs were $854,000. The fixed costs of the divi..

Create a cost function : Coffee Cart sells a variety of hot and cold coffee beverages. Data for a recent month appear below: Categorize each cost as fixed or variable and explain your choice. Create a cost function.

User Account

All Pages