Question

The following represents the financial information for Domingo Corporation for two months. March April $360,000 Sales revenue $540,000 Costs $ 1,550 1,820 Process inspection 1,940 1,870 13,300 Scrap Quality training Warranty repairs Product testing equipment Customer complaints 20,600 4,300 6,700 2,500 16,000 15,100 6,400 9,800 4,800 7,500 3,100 20,000 9,400 4,700 Rework Preventive maintenance Materials inspection Field testing 13,500 Required: a. Classify these items into Prevention, Appraisal, Internal failure, or External failure costs. b. Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for March and April. Complete this question by entering your answers in the tabs below. Required A Required B Classify these items into Prevention, Appraisal, Internal failure, or External failure costs. Activity Category Process inspection Scrap Quality training Warranty repairs Product testing equipment Customer complaints Rework Preventive maintenance Materials inspection Field testing

Answer 1

Activity	Category
Process inspection	Prevention cost
Scrap	Internal Failure Cost
Quality training	Prevention cost
Warranty repairs	External failure costs
Product testing equipment	Appraisal Cost
Customer complaints	External failure costs
Rework	Internal Failure Cost
Preventive inspection	Prevention cost
Material inspection	Prevention cost
Field testing	Appraisal Cost