Eagleson Company's quality cost report is to be based on the following data: Net cost of scrap Liability arising from defective products Warranty repairs and replacements Re-entering data because of keying errors Supplies used in testing and inspection Quality data gathering, analysis, and reporting Final product testing and inspection Test and inspection of in-process goods Systems development $ 75,000 $ 32,000 $ 80,000 $ 75,000 $ 18,000 $ 62,000 $ 21,000 $ 44,000 $ 45,000 What would be the total prevention cost appearing on the quality cost report?

Eagleson Company's quality cost report is to be based on the following data: Net cost of scrap Liability arising from defective products Warranty repairs and replacements Re-entering data because of keying errors Supplies used in testing and inspection Quality data gathering, analysis, and reporting Final product testing and inspection Test and inspection of in-process goods Systems development $ 75,000 $ 32,000 $ 80,000 $ 75,000 $ 18,000 $ 62,000 $ 21,000 $ 44,000 $ 45,000 What would be the total prevention cost appearing on the quality cost report?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A manufacturing company has attained a 2.51 sigma-rating. The product it manufactures have a manufacturing cost of $200 per unit; products go through a 100% check, and defective poducts are scrapped at a salvage valúe equal to 25% of cost. The company uses a 36% markup policy. What would be the per unit price of saleable units? Price = $
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E16.33 Cost of quality report: manufacturer LO 16.8 9 Versatile Electrics manufactures electrical inctruments for a variety of purposes. The following costs, related to maintaining product quality, were incurred in May: Inspection of electrical components purchased from outside suppliers $24 000 Costs of rework on faulty instruments 38 000 Replacement of instruments already sold that were still covered by warranty 85 000 Costs of defective parts that cannot be salvaged 12 200 Training of quality control inspectors 10 000 Tests of instruments before sales 20 000 Required: 1. Prepare a cost of quality report similar to the report shown in Exhibit 16.112. 2. How do you think management should react to the relative size of the four categories of quality costs? 3. Do you think that Versatile Electrics has identified all of its external failure coste? Explain.
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A company must decide between scrapplng or reworking units thnat do not pass Inspection. The comparny has 4A 5000 defectve units than The units can be sold as scrap for $174,000 or reworked for $220,500 and then sold for $416,000. f the company decides to rework th Multiple Cholce $45,000. $242,000. $(97,750). $195,500. $21,500.
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11 Below is the costs related to quality of conformance for Stone Company (in thousands) for 20xx. Inspection $ 850 Quality engineering 450 Depreciation of test equipment 135 Rework labor 1,080 Statistical process control 180 Cost of field servicing 1,260 Supplies used in testing 450 Systems development 850 Warranty repairs 4,680 Net cost of scrap 720 Product testing 1,080 Product recalls 2,880 Disposal of defective products 900 $ 15,515 What were the total appraisal costs in 20xx? А. $ 1,480 В. $ 1,930 С. $ 2,515 D. $ 1,615 E. None of the above
1. The total failure cost is?
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