Sorensen's Sod Supply Company has recently acquired a lawn sod company that grows turf grasses for lawns. Previously, Sorensen's was purchasing sod from other suppliers at 40 cents per square foot. The new sod division, which has substantial excess capacity, is able to produce grass sod at a cost of 25 cents per square foot, including direct materials and direct labor cost of 15 cents, variable overhead of 5 cents, and fixed overhead of 5 cents per square foot. The supply division manager argues that the transfer price should be no more than 25 cents per square foot. What transfer price between the sod and the supply divisions will lead the manger of the supply division to act in a manner that will maximize company profits

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?