Quality Cost Report
Evans Company had total sales of $1,800,000 for fiscal 20x5. The costs of quality-related activities are given below.
Returns/allowances | $90,000 |
Design changes | 72,000 |
Prototype inspection | 3,600 |
Downtime | 90,000 |
Quality circles | 5,400 |
Packaging inspection | 7,200 |
Field testing | 5,400 |
Complaint adjustment | 90,000 |
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 | $ | % |
PREPARATION OF QUALITY COST REPORT, CLASSIFYING COSTS BY CATEOGORY AND EXPRESSING EACH CATEGORY AS A PERCENTAGE OF SALES :
GIVEN THAT, sales = $1800000
FOLLOWING IS THE QUALITY COST REPORT OF EVANS COMPANY,
Quality Cost Report Evans Company had total sales of $1,800,000 for fiscal 20x5. The costs of...
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