A lean manufacturer reports the following quality costs. Prep Training machine operators Product recalls Scrap of defective products Inspecting finished goods Total $50,000 20,000 12,000 18,000 $ 100,000

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter13: Lean Manufacturing And Activity Analysis
Section: Chapter Questions
Problem 16E
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A lean manufacturer reports the following quality costs. Prepare a cost of quality report.
$ 50,000
Training machine operators
Product recalls
20,000
12,000
18,000
$ 100,000
Scrap of defective products
Inspecting finished goods
Total
Prevention
Appraisal
Quality Category
Internal failure
External failure
Total cost of quality
Cost of Quality Report
Cost
Category
Total
% of Total Cost
of Quality
%
%
%
de se
%
%
Transcribed Image Text:A lean manufacturer reports the following quality costs. Prepare a cost of quality report. $ 50,000 Training machine operators Product recalls 20,000 12,000 18,000 $ 100,000 Scrap of defective products Inspecting finished goods Total Prevention Appraisal Quality Category Internal failure External failure Total cost of quality Cost of Quality Report Cost Category Total % of Total Cost of Quality % % % de se % %
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