Respuesta :
Answer:
the amount that added to estimated liability is $1,330
Explanation:
The computation of the amount that added to estimated liability is as follows
= 800 units sold × 3% defective - five defective units
= 24 units - 5 units
= 19 units
Now the amount that should be added is
= 19 units × $70 per unit
= $1,330
Hence, the amount that added to estimated liability is $1,330
The same is to be considered
The total amount which is to be added to the total estimated repairs for Boris Inc. will be $1330. This amount is calculated as per the instructions given in the query.
Boris sold 800 units of a product so it did sales of $7,20,000 as the cost per unit was $900. It has also been provided that the total amount to be calculated will be 3% of the total sales for the month of July.
- The calculation further becomes simpler as there would be 3% defective products out the 800 units sold. This can be illustrated as below
[tex]3=\frac{x}{800} * 100[/tex]
[tex]x=\frac{2400}{100}[/tex]
[tex]x=24[/tex]
- Therefore we know that 24 units will turn out to be defective. So, the total expected liability also known as the contingent liability of Boris Inc. will be as under
[tex](24-5 )* 70= 1330[/tex]
- Here we have deducted the cost of 5 units in the calculation as 5 units have already been detected as defective and their liability has occurred. So, only 19 units are multiplied by the cost of repair of such products.
Hence, Boris Inc. will have to ascertain that their estimated contingent liability is $1330 after multiplying the 3% of units sold with the cost of repair.
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