Quality costs The accounting system for Dolment Co. reflected the following quality costs for Year 1 and Year 2: Customer refunds for poor product quality Fitting machines for mistake-proof operations Supply chain management activities Waste disposal Quality training Litigation claims for product defects Year 1 Year 2 $37,000 $29,000 9,400 11,800 9,000 10,000 44,000 36,000 26,000 30,000 81,000 64,000 a. Which of these are costs of compliance, and which are costs of noncompliance? b. Calculate the percentage change in each cost and for each category. Note: Round each percentage change to the nearest whole percentage. Note: Indicate a decrease with a negative sign. Customer refunds for poor product quality Fitting machines for mistake-proof operations Supply chain management activities Waste disposal Quality training Litigation claims for product defects Compliance cost category Noncompliance cost category Year 1 Year 2 Percentage Change $37,000 $29,000 % 9,400 11,800 % ÷ 9,000 10,000 % 44,000 36,000 % 26,000 30,000 % 81,000 64,000 % % %

Quality costs The accounting system for Dolment Co. reflected the following quality costs for Year 1 and Year 2: Customer refunds for poor product quality Fitting machines for mistake-proof operations Supply chain management activities Waste disposal Quality training Litigation claims for product defects Year 1 Year 2 $37,000 $29,000 9,400 11,800 9,000 10,000 44,000 36,000 26,000 30,000 81,000 64,000 a. Which of these are costs of compliance, and which are costs of noncompliance? b. Calculate the percentage change in each cost and for each category. Note: Round each percentage change to the nearest whole percentage. Note: Indicate a decrease with a negative sign. Customer refunds for poor product quality Fitting machines for mistake-proof operations Supply chain management activities Waste disposal Quality training Litigation claims for product defects Compliance cost category Noncompliance cost category Year 1 Year 2 Percentage Change $37,000 $29,000 % 9,400 11,800 % ÷ 9,000 10,000 % 44,000 36,000 % 26,000 30,000 % 81,000 64,000 % % %

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter13: Emerging Topics In Managerial Accounting

Section: Chapter Questions

Problem 28BEB: Quality Cost Report Loring Company had total sales of 2,400,000 for fiscal 20X1. The costs of...

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The accounting system for Dolment Co. reflected the following quality costs for Year 1 and Year 2: Year 1 Year 2 Customer refunds for poor product quality $33,300 $29,000 Fitting machines for mistake-proof operations 8,460 11,800 Supply chain management activities 8,100 10,000 Waste disposal 39,600 36,000 Quality training 23,400 30,000 Litigation claims for product defects 72,900 64,000 b. Calculate the percentage change in each cost and for each category. (See attached)
Subject-Acounting
MKD Company's quality cost report is to be based on the following data: 3,550,000 Test and inspection of incoming materials Supplies used in testing and inspection 2,550,000 Re-entering data because of keying errors Statistical process control activities Technical support provided to suppliers 3,000,000 4,100,000 4,550,000 Disposal of defective products Lost sales due to poor quality 3,000,000 4,350,000 Net cost of crap 4,250,000 Warranty repairs and replacements 3,500,000 Required: Prepare a Quality Cost Report in good from with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs
What is the appraisal and prevention cost here? Only that two.
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ABC Company's quality cost report is to be based on the following data:What would be the total prevention cost appearing on the quality cost report? P75,000 P93,000 P145,000 P76,000
Fabrick Company's quality cost report is to be based on the following data: Lost sales due to poor quality Quality data gathering, analysis, and reporting Net cost of spoilage Re-entering data because of keying errors Test and inspection of in-process goods Final product testing and inspection Statistical process control activities Returns arising from quality problems Downtime caused by quality problems $ 20,30 $ 63,306 $ 60,200 $ 24,100 $ 11,200 $ 44,400 $ 43,100 $ 36,100 $ 59,800 What would be the total appraisal cost appearing on the quality cost report? Multiple Choice $162,000 $91,300 $71.400 $55.600 [O ASUS ge here to search
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