Sony introduces a new compact music player to compete with Apple's iPod that carries a two-year warranty against manufacturer's defects. Based on industry experience with similar product introductions, warranty costs are expected to be approximately 3% of sales. By the end of the first year of selling the product, total sales are $29.4 million, and actual warranty expenditures are $140,000. What amount (if any) should Sony report as a liability at the end of the year

the  warranty liability is $742,000.

Explanation:

The computation of the warranty liability is as follows;

= Expected warranty liability - actual warranty expenditure

= ($29.4 million × 3%) - $140,000

= $882,000 - $140,000

= $742,000

Hence, the  warranty liability is $742,000.

It could be come by applying the above formula so that the accurate amount could arrive

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

answer; tech (a) is correct;