Walton Company has measured its quality costs for the past two years. After the company gathers its quality cost data, it summarizes those costs using the four categories shown below: This Year Last Year $ 357,000 $ 650,000 $ 445,000 $ 545,000 $ 790,000 $ 500,000 $1,100,000 $ 680,000 Prevention costs Appraisal costs Internal failure costs External failure costs Required: 1. Calculate the total cost of quality last year and this year. Last Year This Year Total cost of quality $ 2,692,000 $ 2,375,000 2. For last year, calculate the cost in each of the four categories as a percent of the total cost of quality. (Round your answers to 1 decimal place.) Last Year Prevention costs 13.3 % Appraisal costs 16.5 % Internal failure costs % External failure costs 40.9 % Total percent 70.7 %

Walton Company has measured its quality costs for the past two years. After the company gathers its quality cost data, it summarizes those costs using the four categories shown below: This Year Last Year $ 357,000 $ 650,000 $ 445,000 $ 545,000 $ 790,000 $ 500,000 $1,100,000 $ 680,000 Prevention costs Appraisal costs Internal failure costs External failure costs Required: 1. Calculate the total cost of quality last year and this year. Last Year This Year Total cost of quality $ 2,692,000 $ 2,375,000 2. For last year, calculate the cost in each of the four categories as a percent of the total cost of quality. (Round your answers to 1 decimal place.) Last Year Prevention costs 13.3 % Appraisal costs 16.5 % Internal failure costs % External failure costs 40.9 % Total percent 70.7 %

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

Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are not "ideal" at this point, but the management is working toward that as a goal. At present, the company uses the following standards. Materials Item Per unit Cost Metal 1 lb. 63¢ per lb Plastic 12 oz. $1.00 per Ib. Rubber 4 oz. 88¢ per Ib. Direct labor Item Per unit Cost Labor 15 min. $9.00 per hr. Predetermined overhead rate based on direct labor hours = $424 The January figures for purchasing, production, and labor are: The company purchased 228,200 pounds of raw materials in January at a cost of 79¢ a pound. Production used 228,200 pounds of raw materials to make 115,000 units in January. Direct labor spent 18 minutes on each product at a cost of $8.80 per hour. Overhead costs for January totaled $54,597 variable and $72,000 fixed. Answer the following questions about standard costs. Your answer is partially correct. What is the materials price variance? (Round…
oriole company provides financial consulting and has collected the following data for the nexts years budgeted activity for a lead consultant, the company employs time and materials pricing. consultants wages $95000 fringe benefits $12500 related overhead $17500 materials clerk wages$17000 fringe benefits $4500 related overhead $20000 profit margin per hour $20 profit margin on materials 33% total estimated consulting hours 5000 total estimated material costs $166000.... the material loading charge is?a)33% b)58% c)25% d)91%
Deep South Glass Company is exploring different prediction models that can be used to forecast machine maintenance costs. One independent variable under consideration is machine hours. Following are matching observations on machine maintenance costs and machine hours for the past six months: Month Machine hours Machine Maintenance costs 1 300 $20,000 400 $24,000 3 240 $17,000 4 370 $22,000 5 200 $13,000 6 225 $14,000 In a high-low model, which months' observations would be used to compute the model's parameters? 4 and 5 1 and 6 2 and 6 O 2 and 5
Quality costs indices are often used to measure costs of quality relative to some financial measure, such as percent of sales. The following information on sales and quality costs were incurred in December 2023: Sales $350,000 Materials Inspection $23,500 Direct Materials Costs $80,000 Direct Labor Costs $35,000 Batch Sampling Costs $6,400 Scrap and Rework Costs $16,800 Cost of Returns and Warranty $14,200 What is the quality of cost index? Answer in decimal format (i.e. 0.XXX)
Solve the word problem for the portion, rate, on base. A quality control process finds 25.6 defects for every 6400 units of production. What percent of the production is defective? 40 Ex %
Qw.140.
Given help with this problem is solution
Maira Corporation has set various goals and the management is taking various appropriate actions to ensure the company achieves these goals. One of the actions is to reduce operational costs, which exceeds budgeted amount. Which of the following functions best describes this process? A. Decision-making B. Planning C. Directing operational activities D. Controlling 2. HOC Company's costs for the month of June 2021 were as follows: direct materials, RM25,000; direct labor, RM32,500; selling, RM16,000; administrative, RM15,500; and manufacturing overhead, RM44,400. The beginning work in process inventory was RM17,000 and the ending work in process inventory was RM7,000. What was the cost of goods manufactured for the month? (a) RM105,000 (b) RM31,500 (c) RM133,400 (d) RM111,900 3. Chery Company manufactures and sells washing machines. In order to make assembly of the machines faster and easier, some of the metal parts in the machines are coated with grease. How should the cost of…
Grayson Industries manufactures freezers. Here is some information about its "LX17" line of freezers over the past year: (Click the icon to view the information.) Read the requirements. Requirement 1. Prepare a Cost of Quality (COQ) report. In addition to calculating the total costs of each category, calculate the percentage of COQ category of the total COQ. (Round the percentage to the one tenth of a percent, X.X% input field is not used in the table, leave the input field empty; do not select a label or enter a zero.) Grayson Cost of Quality Report Prevention Costs: Total prevention costs Appraisal Costs: Total appraisal costs Internal Failure Costs: Total internal failure costs External Failure Costs: Total external failure costs Total costs of quality Costs Incurred Total Costs of Percentage of Total Costs Quality of Quality (Rounded) % Data table % Requirements 1. Prepare a Cost of Quality (COQ) report. In addition to calculating the total costs of each category, calculate the…