In response to Intense foreign competition, Florex Company has taken steps to Improve the quality of its products. A summary of Its quality costs (in thousands) over the past two years is given below: Inspection Quality engineering Depreciation of test equipment Rework labor statistical process control Cost of field servicing Supplies used in testing Systems development Warranty repairs Prevention costs: $ 1,080 $ 54 $ 900 $ 1,530 $ 1,080 Net cost of scrap Product testing $ 1,080 $ 1,350 Product recalls $ 3,105 $ 990 Disposal of production defects $ 720 $ 1,080 Sales have been flat over the past few years, at $90,000,000 per year. Total prevention costs Appraisal costs Total appraisal costs Internal failure costs: Costs (in thousands) Last Year $ 900 Total internal failure costs External failure costs: Total external failure costs Total quality cost Required: 1. Prepare a quality cost report for this year and last year. Note: Enter amount values in thousands. Round your percentage answers to 2 decimal places (l.e 0.1234 should be entered as 12.34). $ 270 $ 675 $ 990 se $ 1,350 0 Florex Company Quality Cost Report 0 $ 45 $ 630 0 $ 3,825 $ 810 0 Last Year Amount (in Percent of Amount (in thousands) Sales thousands) This Year $ 1,701 $ 675 $ 270 0.00 0.00 $ 1,620 $ 225 0.00 0.00 This Year 0 0 0 0 Percent of Sales 0.00 0.00 0.00 0.00
In response to Intense foreign competition, Florex Company has taken steps to Improve the quality of its products. A summary of Its quality costs (in thousands) over the past two years is given below: Inspection Quality engineering Depreciation of test equipment Rework labor statistical process control Cost of field servicing Supplies used in testing Systems development Warranty repairs Prevention costs: $ 1,080 $ 54 $ 900 $ 1,530 $ 1,080 Net cost of scrap Product testing $ 1,080 $ 1,350 Product recalls $ 3,105 $ 990 Disposal of production defects $ 720 $ 1,080 Sales have been flat over the past few years, at $90,000,000 per year. Total prevention costs Appraisal costs Total appraisal costs Internal failure costs: Costs (in thousands) Last Year $ 900 Total internal failure costs External failure costs: Total external failure costs Total quality cost Required: 1. Prepare a quality cost report for this year and last year. Note: Enter amount values in thousands. Round your percentage answers to 2 decimal places (l.e 0.1234 should be entered as 12.34). $ 270 $ 675 $ 990 se $ 1,350 0 Florex Company Quality Cost Report 0 $ 45 $ 630 0 $ 3,825 $ 810 0 Last Year Amount (in Percent of Amount (in thousands) Sales thousands) This Year $ 1,701 $ 675 $ 270 0.00 0.00 $ 1,620 $ 225 0.00 0.00 This Year 0 0 0 0 Percent of Sales 0.00 0.00 0.00 0.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Do not give answer in image
![In response to Intense foreign competition, Florex Company has taken steps to improve the quality of its products. A summary of Its
quality costs (in thousands) over the past two years is given below:
Inspection
Quality engineering
$ 675
$ 270
Depreciation of test equipment
Rework labor
$ 1,620
statistical process control
$ 225
$ 1,080
$ 54
$ 900
Cost of field servicing
Supplies used in testing
Systems development
Warranty repairs
Net cost of scrap
Product testing
Product recalls
$ 1,530
$ 1,080
$ 1,350
$990
Disposal of production defects
$ 1,080
Sales have been flat over the past few years, at $90,000,000 per year.
Prevention costs:
Total prevention costs
Appraisal costs
Total appraisal costs
Internal failure costs:
Costs (in thousands)
Last Year
$ 900
$ 270
$ 675
$ 990
Total internal failure costs
External failure costs:
Required:
1. Prepare a quality cost report for this year and last year.
Note: Enter amount values in thousands. Round your percentage answers to 2 decimal places (l.e 0.1234 should be entered as
12.34).
Total external failure costs
Total quality cost
$ 1,350
$ 45
$ 630
0
$ 3,825
$ 810
Florex Company
Quality Cost Report
0
$ 1,080
$ 3,105
$ 720
0
Last Year
Amount (in Percent of Amount (in
thousands)
Sales thousands)
0.00
This Year
$ 1,701
0.00
0.00
0.00
This Year
0
0
0
0
Percent of
Sales
0.00
0.00
0.00
0.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe35deb41-2b4b-4831-8dee-1fb7dd23ba0d%2F2f8c3866-4b05-478e-a6f1-4d3400724bcc%2F966bnqd_processed.png&w=3840&q=75)
Transcribed Image Text:In response to Intense foreign competition, Florex Company has taken steps to improve the quality of its products. A summary of Its
quality costs (in thousands) over the past two years is given below:
Inspection
Quality engineering
$ 675
$ 270
Depreciation of test equipment
Rework labor
$ 1,620
statistical process control
$ 225
$ 1,080
$ 54
$ 900
Cost of field servicing
Supplies used in testing
Systems development
Warranty repairs
Net cost of scrap
Product testing
Product recalls
$ 1,530
$ 1,080
$ 1,350
$990
Disposal of production defects
$ 1,080
Sales have been flat over the past few years, at $90,000,000 per year.
Prevention costs:
Total prevention costs
Appraisal costs
Total appraisal costs
Internal failure costs:
Costs (in thousands)
Last Year
$ 900
$ 270
$ 675
$ 990
Total internal failure costs
External failure costs:
Required:
1. Prepare a quality cost report for this year and last year.
Note: Enter amount values in thousands. Round your percentage answers to 2 decimal places (l.e 0.1234 should be entered as
12.34).
Total external failure costs
Total quality cost
$ 1,350
$ 45
$ 630
0
$ 3,825
$ 810
Florex Company
Quality Cost Report
0
$ 1,080
$ 3,105
$ 720
0
Last Year
Amount (in Percent of Amount (in
thousands)
Sales thousands)
0.00
This Year
$ 1,701
0.00
0.00
0.00
This Year
0
0
0
0
Percent of
Sales
0.00
0.00
0.00
0.00
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education