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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 This Year $ 750 $ 420 $ 900 $570 $240 $ 210 $1,050 $ 1,500 $ 180 $ 900 Prevention costs: Net cost of scrap Product testing Product recalls Disposal of production defects Sales have been flat over the past few years, at $75,000,000 per year. Total prevention costs $0 $ 1,200 $30 $ 480 $ 3,600 $ 630 $810 $ 2,100 $720 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). Florex Company Quality Cost Report Last Year Amount (in Percent of thousands) Sales 0 $ 60 $750 $ 1,050 $ 1,125 1,200 $ 750 $ $975 0.00 This Year Amount (in thousands) 0 Percent of Sales 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 Costs (in thousands) Last Year This Year $ 750 $ 420 $ 900 $570 $240 $ 210 $1,050 $ 1,500 $ 180 $ 900 Prevention costs: Net cost of scrap Product testing Product recalls Disposal of production defects Sales have been flat over the past few years, at $75,000,000 per year. Total prevention costs $0 $ 1,200 $30 $ 480 $ 3,600 $ 630 $810 $ 2,100 $720 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). Florex Company Quality Cost Report Last Year Amount (in Percent of thousands) Sales 0 $ 60 $750 $ 1,050 $ 1,125 1,200 $ 750 $ $975 0.00 This Year Amount (in thousands) 0 Percent of Sales 0.00

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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: Costs (in thousands) Last Year $ 750 $ 420 $ 210 $ 1,050 $ $0 1,200 $30 $ 480 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 Sales have been flat over the past few years, at $75,000,000 per year. Prevention costs: Total prevention 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 (i.e 0.1234 should be entered as 12.34). $ 3,600 $630 $ 810 $2,100 $ 720 Florex Company Quality Cost Report Last Year Amount (in Percent of thousands) Sales 0 This Year $ 900 $ 570 $ 240 $ 1,500 $ 180 $ 900 $ 60 $750 $ 1,050 $ 1,125 $ 1,200 $ 750 $975 0.00 This Year Amount (in thousands) 0 Percent of Sales 0.00 i ‒‒‒
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: Costs (in thousands) Last Year $ 750 $ 420 $ 210 $ 1,050 $ $0 1,200 $30 $ 480 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 Sales have been flat over the past few years, at $75,000,000 per year. Prevention costs: Total prevention 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 (i.e 0.1234 should be entered as 12.34). $ 3,600 $630 $ 810 $2,100 $ 720 Florex Company Quality Cost Report Last Year Amount (in Percent of thousands) Sales 0 This Year $ 900 $ 570 $ 240 $ 1,500 $ 180 $ 900 $ 60 $750 $ 1,050 $ 1,125 $ 1,200 $ 750 $975 0.00 This Year Amount (in thousands) 0 Percent of Sales 0.00 i ‒‒‒
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