In response to intense foreign competition, Florex Company has taken steps to improve the quality of its products. A summary of itsquality costs (in thousands) over the past two years is given below:InspectionQuality engineeringDepreciation of test equipmentRework laborCosts (in thousands)This YearLast Year$ 630$1,218$ 630$ 420$ 420$ 588$ 1,260Statistical process controlCost of field servicingSupplies used in testingSystems developmentWarranty repairsNet cost of scrapProduct testingProduct recallsDisposal of production defectsSales have been flat over the past few years, at $84,000,000 per year.$0$ 1,470$ 42$ 840$ 3,570$ 210$ 840$ 1,680$ 420$ 2,940$ 630$ 1,092$ 42$ 1,050$ 1,512$1,050$ 1,260$ 924$ 420Required: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 (i.e 0.1234 should be entered as12.34). Prevention costs:Total prevention costsAppraisal costsTotal appraisal costsInternal failure costs:Total internal failure costsExternal failure costs:Total external failure costsTotal quality costFlorex CompanyQuality Cost ReportLast YearAmount (in Percent ofthousands) SalesThis YearAmount (inthousands)Percent ofSales

A quality cost report is a tool used to measure and evaluate the costs associated with maintaining…

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 Costs (in thousands) This Year Last Year $ 630 $1,218 $ 630 $ 420 $ 420 $ 588 $ 1,260 $0 $ 1,470 $ 42 $ 840 $ 3,570 $ 210 $ 840 $ 1,680 $ 420 $ 1,092 $ 42 $ 1,050 $ 1,512 $1,050 $1,260 $ 924 $ 420 Statistical process control Cost of field servicing Supplies used in testing Systems development Warranty repairs Net cost of scrap Product testing Product recalls Disposal of production defects Sales have been flat over the past few years, at $84,000,000 per year. $ 2,940 $ 630 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 (i.e 0.1234 should be entered as 12.34).

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 Costs (in thousands) This Year Last Year $ 630 $1,218 $ 630 $ 420 $ 420 $ 588 $ 1,260 $0 $ 1,470 $ 42 $ 840 $ 3,570 $ 210 $ 840 $ 1,680 $ 420 $ 1,092 $ 42 $ 1,050 $ 1,512 $1,050 $1,260 $ 924 $ 420 Statistical process control Cost of field servicing Supplies used in testing Systems development Warranty repairs Net cost of scrap Product testing Product recalls Disposal of production defects Sales have been flat over the past few years, at $84,000,000 per year. $ 2,940 $ 630 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 (i.e 0.1234 should be entered as 12.34).

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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