Vedral Industries manufactures computer printers. The following represents its financial information for Costs of Quality two years.
Question:
Vedral Industries manufactures computer printers. The following represents its financial information for Costs of Quality two years. (LO 2)
Year | Year 2 SSIES nonce tsnacooen re ta inceier para hance ten $1,960,000 $1,760,000 Costs Process inSpeCtion ..........0cee 13,200 15,000 SCRA ee ween court ioe ous onaertnaes 14,800 15,500 QualihyatralninG! =: eeccsceeeeeee 158,000 105,000 Warranty repairs ......cc.ccceteeeeeee 34,000 38,000 Testing equipment..........0..c6ce 56,000 56,000 Customer complaints ...........000. 22,500 27,200 REWON Kiam ecmtems cnrvee utmde. 136,000 148,000 Preventive maintenance .............. 108,000 76,000 Materials inspection ............0.06. 52,000 38,000 RISES tii eeteaes seceterracsacuatecs 75,000 99,000 Required
a. Classify these items into costs of prevention, appraisal, internal failure, or external failure activities.
b. Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for year | and year 2.
c. Construct a cost-of-quality report for year | and year 2
Step by Step Answer:
Cost Management Strategies For Business Decisions
ISBN: 12
4th Edition
Authors: Ronald Hilton, Michael Maher, Frank Selto