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: Last Year This Year Prevention costs $ 392,700 $ 708,500 Appraisal costs $ 413,900 $ 550,500 Internal failure costs $ 821,600 $ 465,000 External failure costs $ 1,122,000 $ 632,400 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? 1.Calculate the total cost of quality last year and this year?= total cost of quality 2.For last year, calculate the cost in each of the four categories as a percent of the total cost of quality. note: Round your answers to 1 decimal place. Last Year Prevention costs % Appraisal costs % Internal failure costs % External failure costs % Total percent % 3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. Note: Round your answers tThis Year Prevention costs % Appraisal costs % Internal failure costs % External failure costs % total percent % 4A. Calculate the change in total cost of quality over the two-year period. YEAR 1 YEAR 2 Prevention and appraisal activities Internal and external failure costs The total cost of quality 4B.Is performance trending in a favorable or unfavorable direction?
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: Last Year This Year Prevention costs $ 392,700 $ 708,500 Appraisal costs $ 413,900 $ 550,500 Internal failure costs $ 821,600 $ 465,000 External failure costs $ 1,122,000 $ 632,400 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? 1.Calculate the total cost of quality last year and this year?= total cost of quality 2.For last year, calculate the cost in each of the four categories as a percent of the total cost of quality. note: Round your answers to 1 decimal place. Last Year Prevention costs % Appraisal costs % Internal failure costs % External failure costs % Total percent % 3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. Note: Round your answers tThis Year Prevention costs % Appraisal costs % Internal failure costs % External failure costs % total percent % 4A. Calculate the change in total cost of quality over the two-year period. YEAR 1 YEAR 2 Prevention and appraisal activities Internal and external failure costs The total cost of quality 4B.Is performance trending in a favorable or unfavorable direction?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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:
Last Year This Year
Prevention costs $ 392,700 $ 708,500
Appraisal costs $ 413,900 $ 550,500
Internal failure costs $ 821,600 $ 465,000
External failure costs $ 1,122,000 $ 632,400
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?
1.Calculate the total cost of quality last year and this year?= total cost of quality
2.For last year, calculate the cost in each of the four categories as a percent of the total cost of quality.
note: Round your answers to 1 decimal place.
Last Year
Prevention costs %
Appraisal costs %
Internal failure costs %
External failure costs %
Total percent %
3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. Note: Round your answers tThis Year
Prevention costs %
Appraisal costs %
Internal failure costs %
External failure costs %
total percent %
4A. Calculate the change in total cost of quality over the two-year period.
YEAR 1 YEAR 2
Prevention and appraisal activities
Internal and external failure costs
The total cost of quality
4B.Is performance trending in a favorable or unfavorable direction?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
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,
Accounting
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