Woodmier Lawn Products introduced a new line of commercial sprinklers in 2010 that carry a one-year warranty against manufacturer's defects. Because this was the first product for which the company offered a warranty, trade publications were consulted to determine the experience of others in the industry. Based on that experience, warranty costs were expected to approximate 2% of sales. Sales of the sprinklers in 2010 were $2,500,000. Accordingly, the following entries relating to the contingency for warranty costs were recorded during the first year of selling the product:
Accrued liability and expense
Warranty expense (2% x $2,500,000) 50,000
Estimated warranty liability 50,000
Actual expenditures (summary entry)
Estimated warranty liability 23,000
Cash, wages payable, parts and supplies, etc. 23,000
In late 2011, the company's claims experience was evaluated and it was determined that claims were far more than expected—3% of sales rather than 2%.
Required:
1. Assuming sales of the sprinklers in 2011 were $3,600,000 and warranty expenditures in 2011 totaled $88,000, prepare any journal entries related to the warranty.
2. Assuming sales of the sprinklers were discontinued after 2010, prepare any journal entry(s) in 2011 related to the warranty.
Click here for the solution: Woodmier Lawn Products introduced a new line of commercial sprinklers in 2010 that carry a one-year warranty against manufacturer's defects
Showing posts with label Carry. Show all posts
Showing posts with label Carry. Show all posts
Wednesday, October 14, 2015
Saturday, July 11, 2015
TV commercials, newspaper and magazine ads, the tools that carry and deliver the “image” of a marketed product or service, are known as its
1. TV commercials, newspaper and magazine ads, the tools that carry and deliver the “image” of a marketed product or service, are known as its:
2. Given a unique product or service and a small, focused target market, a strategy designed to set a product or service apart from competitors is known as:
3. According to economic theory, unlimited access to information which leads to perfect market knowledge of price structures will tend to cause prices to:
4. For an online marketing effort involving a product (after the selection of a good product name) the URL for your Web site should be:
5. During market segmentation, the investigation of prospect clusters according to lifestyle and self-concept is referred to as:
6. When using electronic tools, logistics (distribution) functions should be:
7. The objective and task method in which the marketer delineates the marketing for the period and then calculates a cost for each task is also known as:
8. One effective method for online marketers to increase consumer credibility in a Web site or product line is to:
9. Good online marketers will be particularly aware of how customers will use their products and the specific advantages and positive outcomes obtained from the use of the products by doing a:
10. Since online media fit best into the direct marketing category, business on the WWW may have the effect of:
11. The implementation of marketing programs means:
12. "Coupon Keys" are:
13. Attracting new customers is about __________ times more costly than selling to and servicing existing customers.
14. Marketers learn about customers' concerns by:
15. SOQ is:
16. Marketing managers should be briefed on a program’s progress:
17. In planning for a 12-month period:
18. Marketing planning:
19. The one invisible marketing "P" that marketers are bringing into the light is:
20. Measurement parameters for judging a salesperson’s performance include:
Click here for the solution: TV commercials, newspaper and magazine ads, the tools that carry and deliver the “image” of a marketed product or service, are known as its
2. Given a unique product or service and a small, focused target market, a strategy designed to set a product or service apart from competitors is known as:
3. According to economic theory, unlimited access to information which leads to perfect market knowledge of price structures will tend to cause prices to:
4. For an online marketing effort involving a product (after the selection of a good product name) the URL for your Web site should be:
5. During market segmentation, the investigation of prospect clusters according to lifestyle and self-concept is referred to as:
6. When using electronic tools, logistics (distribution) functions should be:
7. The objective and task method in which the marketer delineates the marketing for the period and then calculates a cost for each task is also known as:
8. One effective method for online marketers to increase consumer credibility in a Web site or product line is to:
9. Good online marketers will be particularly aware of how customers will use their products and the specific advantages and positive outcomes obtained from the use of the products by doing a:
10. Since online media fit best into the direct marketing category, business on the WWW may have the effect of:
11. The implementation of marketing programs means:
12. "Coupon Keys" are:
13. Attracting new customers is about __________ times more costly than selling to and servicing existing customers.
14. Marketers learn about customers' concerns by:
15. SOQ is:
16. Marketing managers should be briefed on a program’s progress:
17. In planning for a 12-month period:
18. Marketing planning:
19. The one invisible marketing "P" that marketers are bringing into the light is:
20. Measurement parameters for judging a salesperson’s performance include:
Click here for the solution: TV commercials, newspaper and magazine ads, the tools that carry and deliver the “image” of a marketed product or service, are known as its
Sunday, June 28, 2015
Pack & Carry is debating whether to invest in new equipment to manufacture a line of high-quality luggage
Pack & Carry is debating whether to invest in new equipment to
manufacture a line of high-quality luggage. The new equipment would cost
$1,728,125, with an estimated five-year life and no salvage value. The
estimated annual operating results with the new equipment are as
follows:
Revenue from Sales of New Luggage $800,000
Expenses Other Than Depreciation $306,250
Depreciation (Straight-Line Basis) 345,625 651,875
Increase in Net Income from the New Line 148,125
All revenue from the new luggage line and all expenses (except
depreciation) will be received or paid in cash in the same period as
recognized for accounting purposes. You are to compute the following for
the investment in the new equipment to produce the new luggage line:
a. Annual cash flows.
b. Payback period.
c. Return on average investment.
d. Total present value of the expected future annual cash inflows, discounted at an annual rate of 10 percent.
e. Net present value of the proposed investment discounted at 10 percent.
Click here for the solution: Pack & Carry is debating whether to invest in new equipment to manufacture a line of high-quality luggage
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