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Problem 1: Suppose a company has two products: Product X and Product Y. In year 1, there are 7,000 units of product X which cost $5 a unit and 5,000 units of product Y which cost $15 a unit. In year 2, there are 10,000 units of product X which cost $7 and 3,000 units of product Y which cost $20. What is the price index for year 1 and year 2? (rounded two decimal places) Please explain detail how to do it Option 1: Year 1 PI: 115; Year 2 PI: 100 Option 2: Year 1 PI: 85; Year 2 PI: 115 Option 3: Year 1 PI: 100; Year 2 PI: 85 Option 4: Year 1 PI: 100; Year 2 PI: 137
As a result of these transactions, what is the amount of warranty expense for the year and what is the ending balance in Warranty Payable?
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