Galaviz Company's quality cost report is to be based on the following data:Net cost of spoilage $ 86,000Test and inspection of in-process goods $ 32,000Supplies used in testing and inspection $ 94,000Quality engineering $ 100,000Downtime caused by quality problems $ 58,000Systems development $13,000Supervision of testing and inspection activities $ 60,000Cost of field servicing and handling complaints $ 49,000Lost sales due to poor quality $ 25,000Required:Complete the following Quality Cost Report.

1. Identify the Types of Quality Costs:Quality costs are typically categorized into four main…

Answered: Galaviz Company's 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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Process Activity Analysis Roen Company incurred an activity cost of $105,600 for inspecting 40,000 units of production. Management determined that the inspecting objectives could be met without inspecting every unit. Therefore, rather than inspecting 40,000 units of production, the inspection activity was limited to a random selection of 5,000 units out of the 40,000 units of production. Determine the inspection activity cost per unit on 40,000 units of total production both before and after the improvement. If reguired, round per unit amounts to the nearest cent. Inspection activity before improvement per unit Inspection activity after improvement per unit
Ferdon inc. company started job #4 with 32 units. 7 units were rejected upon inspection. normal spoilage is 5 units. costs prior to inspection amount to $1,450 per unit and the spoiled units have a salvage value of $520 per unit. what is the cost per unit of the good units in job #4
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Verizon Manufacturing Company spent $420,000 in 2019 to inspect incoming components. Of the $420,000, $240,000 is fixed appraisal costs. The variable inspection cost is $0.20 per component. It takes six components for each finished product. Internal failure costs average $80 per failed unit of finished goods. In 2019, five percent of all completed items had to be reworked. External failure costs average $200 per failed unit. The company's average external failures are one percent of units sold. The company manufactures all units as ordered and carries no materials inventories. Seeking to decrease its total cost of quality (COQ), Verizon contracted Quality-is-Free Consultants, Inc. (QIFC) to study ways to improve product quality and to reduce costs. Upon completion of the study, QIFC recommended automatic inspection equipment that requires a $63,800 annual cost for training and $169,000 for equipment rental and maintenance. The new equipment will eliminate $49,500 of the fixed appraisal…
Prawitt Company incurred an activity cost of $103,500 for inspecting 30,000 units of production. Management determined that the inspecting objectives could be met without inspecting every unit. Therefore, rather than inspecting 30,000 units of production, the inspection activity was limited to a random selection of 4,000 units out of the 30,000 units of production. Determine the inspection activity cost per unit on 30,000 units of total production both before and after the improvement. If required, round per unit amounts to the nearest cent.Inspection activity before improvement fill in the blank 1 of 2$ per unitInspection activity after improvement fill in the blank 2 of 2$ per unit
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
Galaviz Company's quality cost report is to be based on the following data: Net cost of spoilage Test and inspection of in-process goods Supplies used in testing and inspection Quality engineering Downtime caused by quality problems Systems development Supervision of testing and inspection activities Cost of field servicing and handling complaints Lost sales due to poor quality Required: Complete the following Quality Cost Report. $ 103,000 $ 49,000 $ 111,000 $ 117,000 $ 75,000 $ 30,000 $ 77,000 $ 66,000 $ 42,000 Galaviz Company Quality Cost Report Prevention costs Total prevention cost Appraisal costs
Roen Company incurred an activity cost of $117,300 for inspecting 46,000 units of production. Management determined that the inspecting objectives could be met without inspecting every unit. Therefore, rather than inspecting 46,000 units of production, the inspection activity was limited to a random selection of 4,600 units out of the 46,000 units of production. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Determine the inspection activity cost per unit on 46,000 units of total production both before and after the improvement. Do not round intermediate calculations. If required, round per unit amounts to the nearest cent. Inspection activity before improvement: $ per unit Inspection activity after improvement: $ per unit
Spoilage and Scrap (Appendix) Lexan Textile Company’s Job X12 had one of its 20 unitsspoiled. The cost incurred on the unit was $600. It was specific normal spoilage with an estimateddisposal price of $300 for the spoiled unit. Job Y34 had common normal spoilage with the estimatedcost of $400 from the general production process failure and abnormal spoilage of $200. The company also incurred scrap due to Job Y34 and sold it for $80. It also sold the scrap common to all jobsfor $120 cash in May.Required1. Make the necessary journal entries to record normal and abnormal spoilage costs.2. Make the necessary journal entries to record both types of scrap sold.
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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.

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