Question

1. Quality Cost Report

   Evans Company had total sales of $3,800,000 for fiscal 20x5. The costs of quality-related activities are given below.

   Returns/allowances	$190,000
   Design changes	228,000
   Prototype inspection	11,400
   Downtime	152,000
   Quality circles	7,600
   Packaging inspection	15,200
   Field testing	7,600
   Complaint adjustment	209,000

   Required:

   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 20x5
   	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 2005
	Quality Costs	Total	Percentage of Sales
Prevention Costs
Design Change	$        228,000
Quality Circle	$            7,600	$     235,600	6.2
Appraisal Costs
Prototype Inspection	$          11,400
Packaging Inspection	$          15,200
Field Testing	$            7,600	$        34,200	0.9
Internal Failure Costs
Downtime	$        152,000	$     152,000	4
External Failure Costs
Returns and Allowances	$        190,000
Complaint Adjustment	$        209,000	$     399,000	10.5
Total Quality Costs		820800	21.6