Wally Company makes dog beds. Last year Wally incurred thefollowing costs related to quality control. What is WallyCompany's cost of quality for external failures?1. Repairs for dog beds under warranty2. Seamstress training3. Wages of part-time inspector of products4. Cost of replacements given to customers fordefective dog beds5. Product liability insurance6. Inspection of sewing machines as part of routinemaintenance7. Inspection of fabric and thread for defects8. Repairing defective dog beds prior to sale1,4602,0811,0471,4402,7441,5282531,805

External failures are the types of costs that are incurred by the company on the products that turn…

Wally Company makes dog beds. Last year Wally incurred the following costs related to quality control. What is Wally Company's cost of quality for external failures? 1. Repairs for dog beds under warranty 2. Seamstress training 3. Wages of part-time inspector of products 1,460 2,081 1,047

Wally Company makes dog beds. Last year Wally incurred the following costs related to quality control. What is Wally Company's cost of quality for external failures? 1. Repairs for dog beds under warranty 2. Seamstress training 3. Wages of part-time inspector of products 1,460 2,081 1,047

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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Question

Wally Company makes dog beds. Last year Wally incurred the
following costs related to quality control. What is Wally
Company's cost of quality for external failures?
1. Repairs for dog beds under warranty
2. Seamstress training
3. Wages of part-time inspector of products
4. Cost of replacements given to customers for
defective dog beds
5. Product liability insurance
6. Inspection of sewing machines as part of routine
maintenance
7. Inspection of fabric and thread for defects
8. Repairing defective dog beds prior to sale
1,460
2,081
1,047
1,440
2,744
1,528
253
1,805

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