E11-5 Castellitto Company sells automatic can openers under a 75-day warranty for defec- tive merchandise. Based on past experience, Castellitto estimates that 3% of the units sold will become defective during the warranty period. Management estimates that the average cost of replacing or repairing a defective unit is $20. The units sold and units defective that occurred during the last 2 months of 2012 are as follows. Units Units Defective Month Sold Prior to December 31 November 30,000 600 December 32,000 400 Instructions (a) Determine the estimated warranty liability at December 31 for the units sold in November and December (b) Prepare the journal entries to record the estimated liability for warranties and the costs in- curred in honoring 1,000 warranty claims. (Assume actual costs of $20,000.) (c) Give the entry to record the honoring of 500 warranty contracts in January at an average cost of $20. E11-11 Employee earnings records for Cornafius Company reveal the following gross earn- ings for four employees through the pay period of December 15. J. Glozelle $93,500 L. Schooler $96.100 R. Jen $97,600 T. Crier $104.000 For the pay period ending December 31, each employee's gross earnings is $4,000. The FICA tax rate is 8% on gross earnings of $100,000, Instructions Compute the FICA withholdings that should be made for each employee for the December 31 pay period. (Show computations.)