Quality Cost Report Kang Company reported sales of $3,240,000 in 20x5. At the end of the calendar year, the following quality costs were reported:
Quality Cost Report Kang Company reported sales of $3,240,000 in 20x5. At the end of the calendar year, the following quality costs were reported:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Quality Cost Report
Kang Company reported sales of $3,240,000 in 20x5. At the end of the calendar year, the following quality costs were reported:
| Design review | $162,000 |
| Recalls | 54,000 |
| Reinspection | 27,000 |
| Materials inspection | 21,600 |
| Quality training | 54,000 |
| Process acceptance | 27,000 |
| Scrap | 18,900 |
| Lost sales | 108,000 |
| Product inspection | 16,200 |
| Returned goods | 51,300 |
Required:
Question Content Area
1. Prepare a quality cost report. Round percentages to two decimal places, if rounding is required. For example, 5.79% would be entered as "5.79".
| Quality Costs | Total Quality Cost | Percentage of Sales | |
| Prevention costs: | |||
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$- Select - | ||
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- Select - | $- Select - | - Select -% |
| Appraisal costs: | |||
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$- Select - | ||
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- Select - | ||
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- Select - | - Select - | - Select - |
| Internal failure costs: | |||
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$- Select - | ||
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- Select - | - Select - | - Select - |
| External failure costs: | |||
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$- Select - | ||
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- Select - | ||
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- Select - | - Select - | - Select - |
| Total quality costs | $fill in the blank 7d5ae0fb1fcd069_29 | fill in the blank 7d5ae0fb1fcd069_30% |
Question Content Area
2. Select a graph that shows the relative distribution of quality costs.
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