Melody manufacturing is currently producing 1,000 component parts by incurring costs of $68,000 for direct materials, $30,000 for direct labor, $18,000 for variable overhead, and $20,000 for fixed overhead. melody could eliminate $12,000 of fixed overhead costs if the components were purchased externally. melody wishes to minimize costs and would prefer to purchase the components. what is the maximum amount melody should pay to acquire 1,000 components?

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?