6/30/2016 (in thousands) % of % of total Actual revenues quality costs Prevention costs Machine maintenance $430 Supplier training 21 Design reviews 110 Total prevention costs 561 7 % 27 % Appraisal costs Incoming inspections 111 Final testing 327 Total appraisal costs 438 5 % 21 % Internal failure costs Rework 236 Scrap 132 Total internal failure costs 368 4 % 17 % External failure costs Warranty repairs 168 Customer returns 570 Total external failure costs 738 9 % 35 % Total quality costs $2,105 25 % Total revenues $8,280 12/31/2016 (in thousands) % of % of total Actual revenues quality costs $430 112 219 761 % % 131 327 458 % % 206 121 327 % % 82 465 547 % % $2,093 % $9,060
6/30/2016 (in thousands) % of % of total Actual revenues quality costs Prevention costs Machine maintenance $430 Supplier training 21 Design reviews 110 Total prevention costs 561 7 % 27 % Appraisal costs Incoming inspections 111 Final testing 327 Total appraisal costs 438 5 % 21 % Internal failure costs Rework 236 Scrap 132 Total internal failure costs 368 4 % 17 % External failure costs Warranty repairs 168 Customer returns 570 Total external failure costs 738 9 % 35 % Total quality costs $2,105 25 % Total revenues $8,280 12/31/2016 (in thousands) % of % of total Actual revenues quality costs $430 112 219 761 % % 131 327 458 % % 206 121 327 % % 82 465 547 % % $2,093 % $9,060
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
|
|
6/30/2016 (in thousands)
|
||||
|
|
% of
|
% of total
|
|||
|
|
Actual
|
revenues
|
quality costs
|
||
|
Prevention costs
|
|||||
|
Machine maintenance
|
$430
|
||||
|
Supplier training
|
21
|
||||
|
Design reviews
|
110
|
||||
|
Total prevention costs
|
561
|
7
|
%
|
27
|
%
|
|
Appraisal costs
|
|||||
|
Incoming inspections
|
111
|
||||
|
Final testing
|
327
|
||||
|
Total appraisal costs
|
438
|
5
|
%
|
21
|
%
|
|
Internal failure costs
|
|||||
|
Rework
|
236
|
||||
|
Scrap
|
132
|
||||
|
Total internal failure costs
|
368
|
4
|
%
|
17
|
%
|
|
External failure costs
|
|||||
|
Warranty repairs
|
168
|
||||
|
Customer returns
|
570
|
||||
|
Total external failure costs
|
738
|
9
|
%
|
35
|
%
|
|
Total quality costs
|
$2,105
|
25
|
%
|
||
|
Total revenues
|
$8,280
|
|
12/31/2016 (in thousands)
|
||||
|
% of
|
% of total
|
|||
|
Actual
|
revenues
|
quality costs
|
||
|
|
||||
|
$430
|
||||
|
112
|
||||
|
219
|
||||
|
761
|
|
%
|
|
%
|
|
|
||||
|
131
|
||||
|
327
|
||||
|
458
|
|
%
|
|
%
|
|
|
||||
|
206
|
||||
|
121
|
||||
|
327
|
|
%
|
|
%
|
|
|
||||
|
82
|
||||
|
465
|
||||
|
547
|
|
%
|
|
%
|
|
$2,093
|
|
%
|
||
|
$9,060
|
Expert Solution
Step 1:
The cost of quality would be classified into 4 categories.
- Prevention costs
- Appraisal costs
- Internal failure costs
- External failure costs
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education