Exercise 12-8 (Algo) Cost of Quality [LO12-2] Walton Company measured its quality costs for the past two years and summarized those costs using the four categories shown below: Prevention costs Appraisal costs Internal failure costs External failure costs. Last Year $ 378,400 $ 440,600 $ 813,700 $ 1,144,000 Req 1 Required: 1. Calculate the total cost of quality last year and this year. 2. For last year, calculate the cost in each of the four categories as a percent of the total cost of quality. 3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. 4-a. Calculate the change in total cost of quality over the two-year period. 4-b. Is performance trending in a favorable or unfavorable direction? Req 2 This Year $ 591,500 $ 550,500 Complete this question by entering your answers in the tabs below. $ 455,000 $ 652,800 Req 3 Req 4A Calculate the total cost of quality last year and this year. Req 4B
Exercise 12-8 (Algo) Cost of Quality [LO12-2] Walton Company measured its quality costs for the past two years and summarized those costs using the four categories shown below: Prevention costs Appraisal costs Internal failure costs External failure costs. Last Year $ 378,400 $ 440,600 $ 813,700 $ 1,144,000 Req 1 Required: 1. Calculate the total cost of quality last year and this year. 2. For last year, calculate the cost in each of the four categories as a percent of the total cost of quality. 3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. 4-a. Calculate the change in total cost of quality over the two-year period. 4-b. Is performance trending in a favorable or unfavorable direction? Req 2 This Year $ 591,500 $ 550,500 Complete this question by entering your answers in the tabs below. $ 455,000 $ 652,800 Req 3 Req 4A Calculate the total cost of quality last year and this year. Req 4B
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![**Exercise 12-8 (Algo) Cost of Quality [LO12-2]**
Walton Company measured its quality costs for the past two years and summarized those costs using the four categories shown below:
| | Last Year | This Year |
|--------------------|-------------|------------|
| Prevention costs | $378,400 | $591,500 |
| Appraisal costs | $440,600 | $550,500 |
| Internal failure costs | $813,700 | $455,000 |
| External failure costs | $1,144,000 | $652,800 |
**Required:**
1. Calculate the total cost of quality last year and this year.
2. For last year, calculate the cost in each of the four categories as a percent of the total cost of quality.
3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality.
4-a. Calculate the change in total cost of quality over the two-year period.
4-b. Is performance trending in a favorable or unfavorable direction?
**Instructions:**
Complete this question by entering your answers in the tabs below.
- Req 1
- Req 2
- Req 3
- Req 4A
- Req 4B
**Req 1:**
Calculate the total cost of quality last year and this year.
| Total cost of quality | Last Year | This Year |
|-----------------------|-----------|-----------|
| | | |
(Instructions end here. Graphs and diagrams are not present in the image.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb3ed8f34-39e2-4a96-a5c2-3eabbcd980bb%2F0306e2b1-309a-43b8-add5-46f289b40234%2Fnrfjxdp_processed.png&w=3840&q=75)
Transcribed Image Text:**Exercise 12-8 (Algo) Cost of Quality [LO12-2]**
Walton Company measured its quality costs for the past two years and summarized those costs using the four categories shown below:
| | Last Year | This Year |
|--------------------|-------------|------------|
| Prevention costs | $378,400 | $591,500 |
| Appraisal costs | $440,600 | $550,500 |
| Internal failure costs | $813,700 | $455,000 |
| External failure costs | $1,144,000 | $652,800 |
**Required:**
1. Calculate the total cost of quality last year and this year.
2. For last year, calculate the cost in each of the four categories as a percent of the total cost of quality.
3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality.
4-a. Calculate the change in total cost of quality over the two-year period.
4-b. Is performance trending in a favorable or unfavorable direction?
**Instructions:**
Complete this question by entering your answers in the tabs below.
- Req 1
- Req 2
- Req 3
- Req 4A
- Req 4B
**Req 1:**
Calculate the total cost of quality last year and this year.
| Total cost of quality | Last Year | This Year |
|-----------------------|-----------|-----------|
| | | |
(Instructions end here. Graphs and diagrams are not present in the image.)
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