Exercise 10 - :Elmenar Manufacturing focuses on its quality costs. Itidentified the followingcosts in its accounting records as being quality relatedfor 2017:2017Sales (50,000 units x ID 60) ID 3,000,000ID 90,000ID 120,000ID 36,000ID 60,000ID 120,000ID 90,000ID 75,000ID 9,000ScrapReworkTraining programCustomer complaintsWarrantyTest laborInspection laborSupplier evaluationRequired:1- Prepare a quality cost report by quality cost category.2 - Calculate the ratio of each quality cost category.

A quality cost report refers to the report which contains the thorough details about various costs…

Exercise 10 - : Elmenar Manufacturing focuses on its quality costs. It identified the following costs in its accounting records as being quality related for 2017: 2017 Sales (50,000 units x ID 60) ID 3,000,000 ID 90,000 ID 120,000 Scrap Rework

Exercise 10 - : Elmenar Manufacturing focuses on its quality costs. It identified the following costs in its accounting records as being quality related for 2017: 2017 Sales (50,000 units x ID 60) ID 3,000,000 ID 90,000 ID 120,000 Scrap Rework

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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Assume a company’s activity-based costing system included three expenses: Vehicle operating expenses, $300,000; Vehicle depreciation, $140,000; and Customer service salaries, $190,000. These costs were consumed by four activities as follows: Travel Deliveries Customer Service Other Total Vehicle operating expenses 45% 40% 10% 5% 100% Vehicle depreciation 40% 50% 0% 10% 100% Customer service salaries 20% 30% 35% 15% 100% How much total cost (including all three expenses) would be allocated to the Travel activity?
44 ABC Company uses a backflush costing system with three trigger points: Purchase of direct materials Completion of finished units Sale of finished units The following data are provided for April 2022: Purchase of raw materials – P3,000,000 Conversion costs incurred – P800,000 Standard direct material cost is P100 per unit while standard conversion cost is P25 per unit. ABC Company produced 28,500 units and was able to sell 28,300 units. How much is the Raw and In Process account as of the end of April?
Problem 33-13 (IAA) Acrophobia Company summarized manufacturing and construction activities for 2017 as follows: Finished goods Machinery Materials Direct labor 3,000,000 4,000,000 500,000 1,000,000 Overhead for the prior year was 75% of the direct labor cost. Overhead in 2017 related to both product manufacture and construction activities amounted to P3,600,000. Required: b. Calculate the cost of the machinery if manufacturing and construction activities are to be charged with overhead at the same rate.
Comprehensive problem on unit costs, product costs. Atlanta 0office Equipment manufactures and selis metal shelving. It began operations on January 1, 2017. Costs incurred for 2017 are as follows (V stands for variable; Fstands for fixed): $140,000 V 22,000 V 5,000 V 18,000 V 14,000 F 8,000 V 26,000 F 120,000 V 43,000 F 54,000F Direct materials used Direct manufacturing labor costs Plant energy costs Indirect manufacturing labor costs Indirect manufacturing labor costs Other indirect manufacturing costs Other indirect manufacturing costs Marketing, distribution, and customer-service costs Marketing, distribution, and customer-service costs Administrative costs Variable manufacturing costs are variable with respect to units produced. Variable marketing, distribution, and customer-service costs are variable with respect to units sold. Inventory data are as follows: Ending: December 31, 2017 2,300 Ibs O units 7 units Beginning: January 1, 2017 Direct materials O units O units Work in…
Question 3 The Buffalo Machine Sdn. Bhd. was evaluating its cost structure relating to quality costs. Below items are the cost of quality in the year 2020. With this allocation of quality costs, the company lost 20% of sales due to poor performance. To improve the situation, the company would like to perform the cost of quality analysis. Items Product Reliability Test Process Quality Assurance Audit Rework Cost Production Inspection Supplier Quality System Audit Defect Repair Cost Market Defect Cost Sampling Inspection Quality Assurance Training Product Warranty Cost Cost/RM 10000 8500 12000 12000 5500 18000 80000 8000 16000 40000 a) Identify the items for prevention, appraisal, and failure costs. b) Compute the ratio of prevention, appraisal, and failure costs to total quality costs. c) Based on the analysis of the cost of quality, recommend the company's actions to improve the product quality.
Use FIFO method
puestion 5.4 Stark and Company's has the following cost data: Systems development Final product testing and inspection Quality data gathering, analysis, and reporting Net cost of scrap Customer returns arising from quality problems Amortization of testing equipment $29,000 $12,000 $9,000 $58,000 $56,000 553,000 $16,000 $38,000 $33,000 Rework labour and overhead Testing and inspection of incoming materials Product recalls Submission Instructions: 1. Determine the total prevention costs? 2. Determine total appraisal costs? 3. Determine the total internal failure costs?
10-21 Estimating a cost function using the Account Analysis Approach. Khan Sunil Enterprises, a software engineering firm, uses the account analysis approach to identify the cost behavior of production costs for its premium software. The following details relate to the company's activities for June 2019 in which it produced 350 units. Total Variable Fixed Materials used in production 270,000 Labor costs Production facility costs Total production cost R 10,000 2 4,000 2270,000 2134,000 R130,000 3 3,000 3 17,000 2103,000 100,000 2507,000 3500,000 Required 1. Describe the production cost in the equation form y = a + bx 2. Assume the company intends to produce 400 units next month, calculate the total production costs for the month. 3. Comment on the usefulness of the estimation to management of the company.
Schedule of Activity Costs Quality Control Activities Product testing Assessing vendor quality Recalls Rework Scrap disposal Product design Training machine operators Warranty work Process audits Activity Cost $55,000 26,000 18,000 29,000 8,000 30,000 46,000 12,000 22,000 From the provided schedule of activity costs, determine the internal failure costs.