# A company sells computers at a selling price

\$8.00

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## Description

A company sells computers at a selling price of \$1,450 each. Each computer has a 2 year warranty that covers replacement of defective parts. It is estimated that 3% of all computers sold will be returned under the warranty at an average cost of \$143 each. During November, the company sold 23,000 computers, and 330 computers were serviced under the warranty at a total cost of \$46,000. The balance in the Estimated Warranty Liability account at November 1 was \$25,500. What is the company’s warranty expense for the month of November?
\$49,335
\$98,670
\$46,000
\$47,190
\$20,500

2.Phil Phoenix is paid monthly. For the month of January of the current year, he earned a total of \$8,488. The FICA tax for social security is 6.2% and the FICA tax rate for Medicare is 1.45%. The FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first \$7,000 of an employee’s pay. The amount of federal income tax withheld from his earnings was \$1,408.37. His net pay for the month is (Round your intermediate calculations and final answer to two decimal places):
\$6,566.00
\$6,430.29
\$5,157.63
\$5,996.29
\$6,956.55

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