The manager at East Coast Manufacturing organizes costs to prepare the Costs of Quality report. The manger compiled the following data:Employee training$156,000$205,000Warranty costs$251,000$170,000ReworkProduct testingCost of rejected units$30,000$25,000$760,000$100,000Sales return processing costsLost profits from lost salesInspection at State I of ProductionPreventative maintenance$95,000Improved equipment$145,000What of the following cost is the total cost of quality the manager should use to report the costs in the internal failure cost category?O A. $251,000O B. $602,000C. $281,000O D. $170,000O E. $205,000

Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Answered: The manager at East Coast Manufacturing…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Walton Company measured its quality costs for the past two years and summarized those costs using the four categories shown below: Prevention costs Appraisal costs Internal failure costs External failure costs Last Year $ 324,900 $ 409,400 $ 869,000 $ 1,188,000 This Year $ 689,000 $ 545,000 $ 550,000 $ 673,200 Required: 1. Calculate the total cost of quality last year and this year. 2. For last year, calculate the cost in each of the four categories as a percent of the total cost of quality. 3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. 4-a. Calculate the change in total cost of quality over the two-year period. 4-b. Is performance trending in a favorable or unfavorable direction?
Quality Control Activities Product testing Assessing vendor quality Recalls Rework Scrap disposal Product design Training machine operators Warranty work Process audits Schedule of Activity Costs LA From the provided schedule of activity costs, determine the external failure costs. S Activity Cost $55,000 26,000 18,000 29,000 8,000 30,000 46,000 12,000 22,000
Schedule of Activity Costs Quality Control Activities Process audits $48,300 Training of machine operators 28,200 Processing returned products 20,700 Scrap processing (disposal) 24,200 Rework 8,900 Preventative maintenance 29,300 Product design 43,300 Warranty work 10,000 Finished goods inspection 22,800 From the above schedule of activity costs, determine the value-added Oa. $235,700 Ob. $171,900 Oc. $149,100 Od. $181,900 Activity Cost
Moira Company has just finished its first year of operations and must decide which method to use for adjusting cost of goods sold. Because the company used a budgeted indirect cost rate for its manufacturing operations, the amount that was allocated ($435,000) to cost of goods sold was different from the actual amount incurred ($425,000). Ending balances in the relevant accounts were: Work in Process $ 40,000 Finished Goods 80,000 Cost of Goods Sold 680,000 Required 1. Prepare a journal entry to write off the difference between allocated and actual overhead directly to Cost of Goods Sold Be sure your entry closes the related overhead accounts. 2. Prepart a journal entry that prorates the write-off of the difference between allocated and actual overhead using ending account balances. Be sure your journal entry closes the related overhead accounts.
11 Below is the costs related to quality of conformance for Stone Company (in thousands) for 20xx. Inspection $ 850 Quality engineering 450 Depreciation of test equipment 135 Rework labor 1,080 Statistical process control 180 Cost of field servicing 1,260 Supplies used in testing 450 Systems development 850 Warranty repairs 4,680 Net cost of scrap 720 Product testing 1,080 Product recalls 2,880 Disposal of defective products 900 $ 15,515 What were the total appraisal costs in 20xx? А. $ 1,480 В. $ 1,930 С. $ 2,515 D. $ 1,615 E. None of the above
Galaviz Company's quality cost report is to be based on the following data: Net cost of spoilage Test and inspection of in-process goods Supplies used in testing and inspection Quality engineering Downtime caused by quality problems Systems development Supervision of testing and inspection activities Cost of field servicing and handling complaints Lost sales due to poor quality Required: Complete the following Quality Cost Report. $ 103,000 $ 49,000 $ 111,000 $ 117,000 $ 75,000 $ 30,000 $ 77,000 $ 66,000 $ 42,000 Galaviz Company Quality Cost Report Prevention costs Total prevention cost Appraisal costs
Roen Company incurred an activity cost of $117,300 for inspecting 46,000 units of production. Management determined that the inspecting objectives could be met without inspecting every unit. Therefore, rather than inspecting 46,000 units of production, the inspection activity was limited to a random selection of 4,600 units out of the 46,000 units of production. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Determine the inspection activity cost per unit on 46,000 units of total production both before and after the improvement. Do not round intermediate calculations. If required, round per unit amounts to the nearest cent. Inspection activity before improvement: $ per unit Inspection activity after improvement: $ per unit
Schedule of Activity Costs Quality Control Activities Product testing Assessing vendor quality Recalls Rework Scrap disposal Product design Training machine operators Warranty work Process audits Activity Cost $55,000 26,000 18,000 29,000 8,000 30,000 46,000 12,000 22,000 From the provided schedule of activity costs, determine the internal failure costs.

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

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,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

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

SEE MORE TEXTBOOKS