Warranty Costs Brigham Company sells an electric timer that carries a three-month 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, four percent of the units sold will require repair at an average cost of $40 per unit. The following data reflect Brighams recent experience:

Oct Nov Dec Dec 31 total

Units sold	36,000	34,000	45,000	115,000
Known product failures from sales in:
October	320	550	210	1,080
November		230	360	590
December			410	410

What is the product Warranty Expense ________________? and Estimted Liability for Product Warranty_______________?.

Answer is NOT $43,200 or $184,000