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One of the Camely Chemicals' facilities manufactures a hazardous chemical. The following represents the financial information from the plant for the most recent two years: Sales revenue Costs Redesign manufacturing process Discard defective batches Cleanup toxic spills Warranty claims Product liability claims Rework Preventive maintenance Batch testing Training on equipment Year 1 $ 724,000 $ 2,880 3,780 25,080 12,980 20,180 7,280 11,480 30,280 19,080 Year 2 $ 1,164,000 $ 5,580 6,580 31,580 26,480 23,180 14,480 22,880 26,480 29,780 Required: Construct a cost of quality report for year 1 and year 2. Note: Input all amounts as positive numbers. Round your percentage answers to 1 decimal place (i.e., .321 as 32.1).

One of the Camely Chemicals' facilities manufactures a hazardous chemical. The following represents the financial information from the plant for the most recent two years: Sales revenue Costs Redesign manufacturing process Discard defective batches Cleanup toxic spills Warranty claims Product liability claims Rework Preventive maintenance Batch testing Training on equipment Year 1 $ 724,000 $ 2,880 3,780 25,080 12,980 20,180 7,280 11,480 30,280 19,080 Year 2 $ 1,164,000 $ 5,580 6,580 31,580 26,480 23,180 14,480 22,880 26,480 29,780 Required: Construct a cost of quality report for year 1 and year 2. Note: Input all amounts as positive numbers. Round your percentage answers to 1 decimal place (i.e., .321 as 32.1).

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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One of the Camely Chemicals' facilities manufactures a hazardous chemical. The following represents the financial information from the plant for the most recent two years: Sales revenue Costs Redesign manufacturing process Discard defective batches Cleanup toxic spills Warranty claims Product liability claims Rework Preventive maintenance. Batch testing Training on equipment Year 1 $ 724,000 $ 2,880 3,780 25,080 12,980 20,180 7,280 11,480 30, 280 19,080 Year 2 $ 1,164,000 $ 5,580 6,580 31,580 26,480 23,180 14,480 22,880 26,480 29,780 Required: Construct a cost of quality report for year 1 and year 2. Note: Input all amounts as positive numbers. Round your percentage answers to 1 decimal place (i.e., .321 as 32.1).
Transcribed Image Text:One of the Camely Chemicals' facilities manufactures a hazardous chemical. The following represents the financial information from the plant for the most recent two years: Sales revenue Costs Redesign manufacturing process Discard defective batches Cleanup toxic spills Warranty claims Product liability claims Rework Preventive maintenance. Batch testing Training on equipment Year 1 $ 724,000 $ 2,880 3,780 25,080 12,980 20,180 7,280 11,480 30, 280 19,080 Year 2 $ 1,164,000 $ 5,580 6,580 31,580 26,480 23,180 14,480 22,880 26,480 29,780 Required: Construct a cost of quality report for year 1 and year 2. Note: Input all amounts as positive numbers. Round your percentage answers to 1 decimal place (i.e., .321 as 32.1).
Sales revenue Prevention: Redesign process Training on equipment Preventive maintenance Total prevention costs Appraisal: Batch testing Internal failure: Discard defective batches Rework Total internal failure costs External failure: Warranty claims Product liability claims Cleanup toxic spills Total external failure costs Total costs of quality > Answer is complete but not entirely correct. CAMELY CHEMICALS Cost of Quality Report (Percentages are Rounded) Year 1 $724,000 $ $ 33,440 $ 30,280 $ 2,880 19,080 11,480 69 $ $ 3,780 7,280 11,060 12,980 20,180 25,080 58,240 133,020 % 0.4 X $ 2.6 X 1.6 X 4.6 Year 2 $ 1,164,000 4.2 $ 1.5 $ 69 0.5 X $ 1 x 14.9 $ 1.8 X $ 2.8 X 4.6 X $ $ 5,580 29,780 22,880 58,240 26,480 6,580 14,480 21,060 26,480 23,180 31,580 81,240 187,020 % 5.0 2.3 1.8 4.3 13.4
Transcribed Image Text:Sales revenue Prevention: Redesign process Training on equipment Preventive maintenance Total prevention costs Appraisal: Batch testing Internal failure: Discard defective batches Rework Total internal failure costs External failure: Warranty claims Product liability claims Cleanup toxic spills Total external failure costs Total costs of quality > Answer is complete but not entirely correct. CAMELY CHEMICALS Cost of Quality Report (Percentages are Rounded) Year 1 $724,000 $ $ 33,440 $ 30,280 $ 2,880 19,080 11,480 69 $ $ 3,780 7,280 11,060 12,980 20,180 25,080 58,240 133,020 % 0.4 X $ 2.6 X 1.6 X 4.6 Year 2 $ 1,164,000 4.2 $ 1.5 $ 69 0.5 X $ 1 x 14.9 $ 1.8 X $ 2.8 X 4.6 X $ $ 5,580 29,780 22,880 58,240 26,480 6,580 14,480 21,060 26,480 23,180 31,580 81,240 187,020 % 5.0 2.3 1.8 4.3 13.4
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