Indicate what category of quality costs are the following costs (one of the four quality costs categories).a) 200,000 TL is invested in a research project to improve machine design for more accuratemanufacturing of a product.b) 10,000 TL is spent weekly to take hourly samples of products from a manufacturing process in order tomeasure a quality characteristic to see if the product is manufactured within the standards specified.c) 80,000 TL is spent monthly on the replacement of products returned from the customers due to badquality and damage.d) 50,000 TL is being spent in a rework station to repair defective products coming out of themanufacturing process.e) 5,000 TL is spent weekly to take samples from the incoming material to check if the material meet thespecification required for the process. In a manufacturing process, 70% of parts produced are good parts, while 30% of parts are sent to a reworkstation. 80% of parts coming from the rework station are good parts, while 20% are scrapped. Suppose thatmanufacturing cost per unit is 200 TL/unit in the initial process and 250 TL/unit in the rework station.a) Determine the cost per good unit.Cost/Good Unit =Initial ProcessRework Processb) If a quality improvement program is implemented, 90% of parts produced become good parts (a changefrom 70% to 90% is achieved). 10% of parts are sent to the rework station, where again a qualityimprovement (QI) program is implemented, and the percent of good parts is increased from 80% to 90%and only 10% are scrapped. Determine the manufacturing costper good unit after the quality improvement.Cost/Good Unit After QI=c) Determine the % increase in productivity and % decrease in cost/good unit due quality improvement.% Increase in Productivity=% Decrease in Cost =2

Quality costs are typically categorized into four main categories: prevention costs, appraisal…

Indicate what category of quality costs are the following costs (one of the four quality costs categories). a) 200,000 TL is invested in a research project to improve machine design for more accurate manufacturing of a product. b) 10,000 TL is spent weekly to take hourly samples of products from a manufacturing process in order to measure a quality characteristic to see if the product is manufactured within the standards specified. c) 80,000 TL is spent monthly on the replacement of products returned from the customers due to bad quality and damage. d) 50,000 TL is being spent in a rework station to repair defective products coming out of the manufacturing process. e) 5,000 TL is spent weekly to take samples from the incoming material to check if the material meet the specification required for the process.

Indicate what category of quality costs are the following costs (one of the four quality costs categories). a) 200,000 TL is invested in a research project to improve machine design for more accurate manufacturing of a product. b) 10,000 TL is spent weekly to take hourly samples of products from a manufacturing process in order to measure a quality characteristic to see if the product is manufactured within the standards specified. c) 80,000 TL is spent monthly on the replacement of products returned from the customers due to bad quality and damage. d) 50,000 TL is being spent in a rework station to repair defective products coming out of the manufacturing process. e) 5,000 TL is spent weekly to take samples from the incoming material to check if the material meet the specification required for the process.

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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