Chapter 1 Problem 1-28
Units sold:
October 32,000
November 28,000
December 40,000
Total 100,000
Multiply by 2%
Total failures expected 2,000
Less: Failures already recorded:
October sales 640
November sales 360
December sales 180 1,180
Expected future failures 820
Multiply by 150
Estimated cost 123,000
Warranty expense 123,000
Estimated warranty liability 123,000
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