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).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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 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
Costs (in thousands)
Last Year
$ 630
$ 540
$495
$ 1,080
$ 8
$ 1,260
$ 45
$ 720
$ 4,680
$ 720
This Year
$918
$ 728
$ 180
$ 1,530
$ 270
$ 1,178
$ 72
$ 900
$ 1,448
$ 1,440
Net cost of scrap
Product testing
Product recalls
Disposal of production defects
$ 990
$
1,710
$ 2,610
$ 990
$980
$ 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).
Prevention costs:
Total prevention costs
Appraisal costs
Florex Company
Quality Cost Report
Last Year
This Year
Amount (In Percent of
thousands) Sales
Amount (In
thousands)
Percent of
Salee
0.00
0.00
Total appraisal costs
0
0.00
0
0.00
Internal failure costs:
Total internal failure costs
0
0.00
0
0.00
External failure costs:
Total external failure costs
0
0.00
0
0.00
Total quality cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa5ce751d-e1db-4074-be21-10eaa9189ef4%2F5b04aebe-a7c1-4a94-8eca-922abb933185%2Fgeiqv9b_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 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
Costs (in thousands)
Last Year
$ 630
$ 540
$495
$ 1,080
$ 8
$ 1,260
$ 45
$ 720
$ 4,680
$ 720
This Year
$918
$ 728
$ 180
$ 1,530
$ 270
$ 1,178
$ 72
$ 900
$ 1,448
$ 1,440
Net cost of scrap
Product testing
Product recalls
Disposal of production defects
$ 990
$
1,710
$ 2,610
$ 990
$980
$ 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).
Prevention costs:
Total prevention costs
Appraisal costs
Florex Company
Quality Cost Report
Last Year
This Year
Amount (In Percent of
thousands) Sales
Amount (In
thousands)
Percent of
Salee
0.00
0.00
Total appraisal costs
0
0.00
0
0.00
Internal failure costs:
Total internal failure costs
0
0.00
0
0.00
External failure costs:
Total external failure costs
0
0.00
0
0.00
Total quality cost
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 with 6 images
![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