At may 31, 2017, the accounts of lopez company show the following.1. may 1 inventories—finished goods $15,100, work in process $15,900, and raw materials $8,600.2. may 31 inventories—finished goods $9,700, work in process $16,400, and raw materials $7,900.3. debit postings to work in process were direct materials $63,800, direct labor $51,600, and manufacturing overhead applied $40,100.4. sales revenue totaled $216,400. at may 31, 2017, the accounts of lopez company shoat may 31, 2017, the accounts of lopez company sho prepare a condensed cost of goods manufactured schedule. prepare an income statement for may through gross profit. indicate the balance sheet presentation of the manufacturing inventories at may 31, 2017.

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?