What is the expected value of the warranty cost provision

Assignment Help Accounting Basics
Reference no: EM132557845

Question - Sunland Company uses IFRS for its financial reporting. It produces machines that sell globally. All sales are accompanied by a one-year warranty. At the end of the year, the company has the following data:

5100 units were sold during the year.

The trend over the past five years has been that 3% of the machines were defective in some way and had to be repaired. Of this 3%, half required a full replacement at a cost of $2800 per unit and half were able to be repaired at an average cost of $280.

Required - What is the expected value of the warranty cost provision?

Reference no: EM132557845

Questions Cloud

Calculate the cash received from the sale of the bonds : Prepare the journal entries on the books of the Tina Thi Thuy Le Corporation to record the following July 01, 2014, the extinguishment.
What is the provision for the lease under ifrs : Waterway Industries leased an office under a five-year contract, which has been accounted for as an operating lease. What is the provision for the lease
Omnipotent and symbolic views of management : (a) Differentiate between omnipotent and symbolic views of management.
Prepare the accounting entry on july : Prepare the accounting entry on July 01, 2014 if the policy of the Tina Thi Thuy Le Corporation had been to carry the bonds at fair market value.
What is the expected value of the warranty cost provision : Sunland Company uses IFRS for its financial reporting. It produces machines that sell globally. What is the expected value of the warranty cost provision
List out the operation processes : List out the operation processes that are obsolete after the technology evolves in?
What is the estimated fair value of the trade name : Swifty determines that the appropriate discount rate for this estimation is 5%. To the nearest dollar, what is the estimated fair value of the trade name
Why human resource is essential part : Why human resource is essential part of retailing and what are its major functions?
How to prepare bond amortization schedule : How to prepare bond amortization schedule through 2022. Based on the senior accountant's advised on 1 January 2018, SP purchased bonds at 10% stated rate

Reviews

Write a Review

Accounting Basics Questions & Answers

  Break-even point and operating leverage

Explain how the break-even point and operating leverage are affected by the choice of manufacturing facilities (labor intensive versus capital intensive).

  Calculate the partners shares of profits and losses

ABC has recently formed a partnership by investing $45,000, $60,000, and $35,000, respectively. Calculate the partners' shares of profits and losses

  The corporate headquarters and central accounting office

roniger products company operates three divisions each with its own manufacturing plant and marketingsales force. the

  Discuss the costs and methodology to capture those costs

Discuss the costs and methodology to capture those costs for which the GC could make a claim

  Problem regarding the grove tree mountain

Considering this probability, comment on whether Grove Tree Mountain might not be a typical hospital in terms of its patients' likelihood of picking up an infection. Source: Anita Manning, "Hospital Infections Jump as Outpatient Care Rises," USA To..

  Identify methods management can use to evaluate to expand

Cardinal Company is considering an investment expected to generate an average net income after taxes of $1,300 for three years.

  Compute its return on equity

Starbucks reports net income for 2015 of $2,880.4 million. Compute its return on equity for 2015

  Mosbey inc is working on its cash budget for june the

mosbey inc. is working on its cash budget for june. the budgeted beginning cash balance is 23000. budgeted cash

  Calculate annual returns for goodman and landry

Use the data given to calculate annual returns for Goodman, Landry, and the Market Index, and then calculate average annual returns for the two stocks and the index.

  B company has a minimum required rate of return of 8 it

b company has a minimum required rate of return of 8. it is considering investing in a project that costs 68337 and is

  What is the annual dividend on the preferred stock

Kingbird Inc. has 16000 shares of 8%, $100 par value, What is the annual dividend on the preferred stock

  Compute the price ShriverShriver paid

S Corp. purchased 5, $1,000, 6% bonds of Simplex Corporation when the market rate of interest was 10%. Compute the price ShriverShriver paid

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd