Problem 12-19 (Algo) Quality Cost Report [LO12-2]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 laborStatistical process controlCost of field servicingSupplies used in testingSystems developmentWarranty repairsCosts (in thousands)Last Year$ 630$ 540$495$ 1,080$ 8$ 1,260$ 45$ 720$ 4,680$ 720This Year$918$ 728$ 180$ 1,530$ 270$ 1,178$ 72$ 900$ 1,448$ 1,440Net cost of scrapProduct testingProduct recallsDisposal of production defects$ 990$1,710$ 2,610$ 990$980$ 1,080Sales have been flat over the past few years, at $90,000,000 per year.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 (1.e 0.1234 should be entered as12.34).Prevention costs:Total prevention costsAppraisal costsFlorex CompanyQuality Cost ReportLast YearThis YearAmount (In Percent ofthousands) SalesAmount (Inthousands)Percent ofSalee0.000.00Total appraisal costs00.0000.00Internal failure costs:Total internal failure costs00.0000.00External failure costs:Total external failure costs00.0000.00Total quality cost

Quality cost refers to the cost that a company has to incur to ensure that the final product of the…

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 Net cost of scrap Product testing Product recalls Disposal of production defects Costs (in thousands) Last Year This Year $ 630 $ 540 $495 $ 1,880 $8 $ 1,260 $ 45 $ 728 $ 4,680 $ 918 $ 728 $ 180 $ 1,530 $ 270 $ 1,170 $ 72 $ 900 $ 1,440 $ 1,440 $ 1,710 $ 720 $ 990 $ 2,610 $ 900 $ 998 $ 1,080 Sales have been flat over the past few years, at $90,000,000 per year. 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 (1.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 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 Costs (in thousands) Last Year This Year $ 630 $ 540 $495 $ 1,880 $8 $ 1,260 $ 45 $ 728 $ 4,680 $ 918 $ 728 $ 180 $ 1,530 $ 270 $ 1,170 $ 72 $ 900 $ 1,440 $ 1,440 $ 1,710 $ 720 $ 990 $ 2,610 $ 900 $ 998 $ 1,080 Sales have been flat over the past few years, at $90,000,000 per year. 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 (1.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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