A manufacturing company sells its main product with a three-year warranty against defects. The company expects...

 

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A manufacturing company sells its main product with a three-year warranty against defects. The company expects that 6% of the units sold will prove to be defective during the warranty period. Management expects warranty claims will be even over the three- year warranty period. The average cost to repair or replace a defective unit under the warranty is expected to be $68. The company's sales and warranty costs incurred in its first three years were as follows: Actual Costs of Repairs and Replacements under Units Sold the Warranty Plan 2018 9,800 $5.600 2019 12,300 $15,800 2020 19,000 $37,200 Calculate the amount that should have appeared in the estimated Warranty Provision account at the end of 2018. Estimated Warranty Provision account, Dec. 31, 2018 $ Calculate the amount of warranty expense that should have been recognized in 2019 and 2020. Warranty expense 2019 2$ Warranty expense 2020 $ A manufacturing company sells its main product with a three-year warranty against defects. The company expects that 6% of the units sold will prove to be defective during the warranty period. Management expects warranty claims will be even over the three- year warranty period. The average cost to repair or replace a defective unit under the warranty is expected to be $68. The company's sales and warranty costs incurred in its first three years were as follows: Actual Costs of Repairs and Replacements under Units Sold the Warranty Plan 2018 9,800 $5.600 2019 12,300 $15,800 2020 19,000 $37,200 Calculate the amount that should have appeared in the estimated Warranty Provision account at the end of 2018. Estimated Warranty Provision account, Dec. 31, 2018 $ Calculate the amount of warranty expense that should have been recognized in 2019 and 2020. Warranty expense 2019 2$ Warranty expense 2020 $

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1 Warranty expense2018 39984 9800686 Le... View the full answer