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Warranty Costs Brigham Company sells an electric timer that carries a 60-day unconditional...

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Accounting

Warranty Costs
Brigham Company sells an electric timer that carries a 60-day unconditional warranty against product failure.
Based on a reliable statistical analysis, Brigham knows that between the sale and the end of the product warranty
period, three percent of the units sold will require repair at an average cost of $53 per unit.
The following data reflect Brighams recent experience:
October November December Dec. 31 Total
Units sold 54,00051,00067,500172,500
Known product failures from sales in:
October 4808253151,620
November 345540885
December 615615
Calculate the estimated liability for product warranties at December 31.

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