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 This Year Inspection $ 750 S 900 Quality engineering S 420 S 570 Depreciation of test equipment S 210 S 240 Rework labor $ 1,050 S 1,500 Statistical process control S 0 S 180 Cost of field servicing S 1,200 S 900 Supplies used in testing S 30 S 60 Systems development S 480 S 750 Warranty repairs S 3, 600 S 1,050 Net cost of scrap S 630 S 1, 125 Product testing S 810 S 1,200 Product recalls S 2, 100 S 750 Disposal of production defects $720 $ 975 Sales have been flat over the past few years, at $75,000,000 per year. Required: 1. Prepare a quality cost report for this year and last year.
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 This Year Inspection $ 750 S 900 Quality engineering S 420 S 570 Depreciation of test equipment S 210 S 240 Rework labor $ 1,050 S 1,500 Statistical process control S 0 S 180 Cost of field servicing S 1,200 S 900 Supplies used in testing S 30 S 60 Systems development S 480 S 750 Warranty repairs S 3, 600 S 1,050 Net cost of scrap S 630 S 1, 125 Product testing S 810 S 1,200 Product recalls S 2, 100 S 750 Disposal of production defects $720 $ 975 Sales have been flat over the past few years, at $75,000,000 per year. Required: 1. Prepare a quality cost report for this year and last year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A4
Expert Solution
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
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
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education