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) Last Year This Year $ 630 $ 918 $ 540 $ 720 $ 495 $ 180 $ 1,080 $ $0 1,260 $ 45 $ 720 $ 900 Statistical process control Cost of field servicing Supplies used in testing. Systems development Warranty repairs Net cost of scrap Product testing Product recalls $ 1,440 $ 1,440 $ 1,710 $ 990 Disposal of production defects $ 1,080 Sales have been flat over the past few years, at $90,000,000 per year. $ 1,530 $ 270 $ 1,170 $ 72 $ 4,680 $ 720 $ 990 $ 2,610 $ 900 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) Last Year This Year $ 630 $ 918 $ 540 $ 720 $ 495 $ 180 $ 1,080 $ $0 1,260 $ 45 $ 720 $ 900 Statistical process control Cost of field servicing Supplies used in testing. Systems development Warranty repairs Net cost of scrap Product testing Product recalls $ 1,440 $ 1,440 $ 1,710 $ 990 Disposal of production defects $ 1,080 Sales have been flat over the past few years, at $90,000,000 per year. $ 1,530 $ 270 $ 1,170 $ 72 $ 4,680 $ 720 $ 990 $ 2,610 $ 900 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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