Question

The following represents the financial information for Domingo Corporation for two months. March $498,000 April $456,000 $ $ Sales revenue Costs Process inspection Scrap Quality training Warranty repairs Product testing equipment Customer complaints Rework Preventive maintenance Materials inspection Field testing 3,050 2,200 21,200 6,400 7,700 3,850 17,700 14,900 7,900 10,800 3,280 2,280 14,400 6,900 7,700 4,450 22,000 10,900 6,200 13,800 Required: Construct a cost of quality report for March and April. (Input all amounts as positive values. Round percentage answers to 1 decimal place (i.e., 32.1).)

Answer 1

Answer-

DOMINGO CORPORATION
COST OF QUALITY REPORT
PARTICULARS	MARCH	%	APRIL	%
	$		$
Sales Revenue	498000		456000
Prevention Costs:-
Process Inspection	3050		3280
Quality training	21200		14400
Preventive maintenance	14900		10900
Material inspection	7900		6200
Total Preventive costs	47050	9.4	34780	7.6
Appraisal Costs:-
Product Testing equipment	7700		7700
Fielding teseting	10800		13800
Total Appraisal Costs	18500	3.7	21500	4.7
Internal Failure costs:-
Scrap	2200		2280
Rework	17700		22000
Internal Failure costs	19900	4.0	24280	5.3
External Failure costs:-
Warranty repairs	6400		6900
Customer complaints	3850		4450
Total External Failure costs	10250	2.1	11350	2.5
Total Cost of Quality (COQ)	95700	19.2	91910	20.2