Hatcher Corporation Sold 10,500 Dishwashers for £1,100 Each During 2011

question 74

Multiple Choice

Hatcher Corporation sold 10,500 dishwashers for £1,100 each during 2011.The dishwashers are under warranty for one year following the sale.Maintenance on the dishwashers during the warranty period averages £90 each.Actual warranty costs incurred during 2011 for units sold that year were £296,000.The statement of financial position at year end will report a related liability of:

• A)$296,000.
• B)$649,000.
• C)$945,000.
• D)$1,030,900.

---

Definitions:

Idea Generation

Idea generation is the process of creating, suggesting, or conceptualizing new thoughts, concepts, or solutions, often in the context of problem-solving or innovation.

New-Product Development Process

The series of steps from idea generation and screening to commercialization, used by companies to launch new products.

New-product

Products that have been recently developed and introduced to the market, offering new benefits or improvements over existing offerings.

Marketing Reasons

The underlying motives or justifications for implementing particular marketing strategies or actions to achieve business objectives.