ch.13 mastery

Cost of Quality Report This year, Finn Corporation implemented programs designed to assess the costs of quality for the company. However, the company recently suffere data loss, and some of its records have been either partially or completely erased. The accounting intern for Finn Corporation has located a copy of recent cost of quality report, shown as follows, but the quality activity analysis used to create the report has been lost. Finn Corporation Cost of Quality Report Percent of Total Percent of Quality Cost Classification Quality Cost Quality Cost Total Sales Prevention $207,400 61% 12.2% Appraisal 51,000 Internal failure 47,600 15 3.0 14 2.8 34,000 10 2.0 External failure $340,000 100% 20.0% Totals 8 Quality Activity Analysis As mentioned on the cost of Quality Report, Finn Corporation recently suffered a data loss, and some of its records have been lost. After reviewing the Cose of Quality Report, recreate the quality activity analysis in the following table from which the cost of quality report was created. Quality Control Activities Activity Cost Rework Inspecting Incoming raw materials Warranty work Process Improvement effort Total activity cost $340,000