Storm Concert Promotions Valle Home Builders
Actual indirect materials costs $22,000 12,500
Actual indirect labor costs 46,000 46,500
Other overhead costs 17,000 47,000
Overhead applied 88,200 105,200
Required:
Storm Concert Promotions:
1. Determine whether overhead is overapplied or underapplied.
2. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.
Valle Home Builders:
3. Determine whether overhead is overapplied or underapplied.
4. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.

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?