Question

Cornerstone Exercise 14.1 (Algorithmic)
Quality Cost Report

Evans Company had total sales of $1,100,000 for fiscal 2015. The costs of quality-related activities are given below.

Returns/allowances	$49,500
Design changes	49,500
Prototype inspection	4,400
Downtime	49,500
Quality circles	5,500
Packaging inspection	4,400
Field testing	4,400
Complaint adjustment	88,000

Required:

Hide 1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. Round percentages to one decimal place, when rounding is required. For example, 5.78% would be entered as "5.8". Evans Company Quality Cost Report For the Year Ended 2015 Quality Costs Total Percentage of Sales Prevention costs: $   $     % Appraisal costs: $   Internal failure costs: $   External failure costs: $   Total quality costs $     %

Answer 1

Evans Company Quality Cost report For the year Ended 2015 Quality Costs () Total (S) Percentage of Sales (%) Prevention Costs: Design changes Quality circles 49.500 5,500 55,000 5.00 Appraisal Costs: Prototype inspection Packaging inspection Field testing 4,400 4,400 4.400 13,200 1.20 Internal failure costs: Downtime 49,500 49,500 4.50 External failure costs: Returns/allowances Complaint adjustment 49.500 88,000 1,37,500 12.50 Total quality costs 2,55,200 23.20