ABC Sdn. Bhd.s bladeless fan division sells two main types of fan, Brand D and Brand E. Brand D are sold with a 1-year warranty for replacement of parts and labor. The estimated warranty cost, based on the past few years, is 3% of sales. For Brand E, a premium is offered. Customers receive a coupon for each RM spent on Brand E. Customers may exchange 400 coupons and $40 for a hair dryer. ABC pays $60 for each hair dryer and estimates that 60% of the coupons given to customers will be redeemed.

ABC's total sales for 2019 were $4,000,000 comprising $2,500,000 for Brand D and $1,500,000 for Brand E. Replacement parts and labor for warranty work totaled $50,000 during 2019. A total of 4,000 hair dryer used in the premium program were purchased during the year and there were 600,000 coupons redeemed in 2019.

The balances in the accounts related to warranties and premiums on January 1, 2019, were Premium Liability of $50,000, Warranty Liability of $85,000 and Inventory premiums of $52,000.

Required:

For the year ended 31 December 2019, calculate the:

a. Warranty Expense (4 marks)

b. Warranty Liability (4 marks)

c. Premium Expense (4 marks)

d. Inventory of Premiums (4 marks)

e. Premium Liability (4 marks)