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

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