1.Liverpool corporation which manufactures appliances for other companies made sales of $200000000 subject to the product warranties. In the past years between 4% and 6% of the products provided defective and Liverpool management estimated that 5% of the product it will sell this year will require repair or replacement during the one year warranty period. The defective merchandise totaled to $ 8000000 half o which was repaired and half was replaced

Required

i.Calculate the warranty expense for the period

ii.Show journals to record the warranty expense.

iii.Show the ledger accounts to record the repaired and replaced merchandised

Beta company entered into the agreement to lease the vehicle from mare ltd. The market price of the vehicle is $10000000. Lease payment are 5 installments of $ 2571000 paid at the end of the year.

Required:

i.Calculate the amount of the finance charge that will appear in the years profit and loss as an expense

ii.Show the lessors account and the finance charge account in the book of the lessor

2. A is to be admitted into the X and Y partnership. The average profit is$40000. The netbook of the asset is $450000 and the market rate of the capital is 8%. Calculate the goodwill to be used using the capitalization method

3. what happens when the partner dies in the partnership business (6 marks )

4. What is direct cost in manufacturing firms

5. Work-in-progress

6. Manufacturing cost

7. Indirect manufacturing cost

8.The following information was obtained from Hano manufacturing company at the end of the year as per 31 December 2018

Direct material $800000

Direct wages $50000

Direct expenses $20000

Factory writing $1000

Factory repairs $2000

Factory powers $ 8000

Factory lighting $1000

Factory rent $5000

Working the progress balance carried forward $4000

Balance brought forward $5000

The factory cost of the completed units is transferred to the income statement at 12 at 12% cost plus (factory make up).