Question
Evans Company had total sales of $4,000,000 for fiscal 20x5. The costs of quality-related activities are given below. Returns/allowances Design changes $300,000 180,000 Prototype inspection
Evans Company had total sales of $4,000,000 for fiscal 20x5. The costs of quality-related activities are given below. Returns/allowances Design changes $300,000 180,000 Prototype inspection 12,000 Downtime 240,000 Quality circles 8,000 Packaging inspection 16,000 Field testing Complaint adjustment Required: 16,000 220,000 1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. Round percentages to one decimal place, when rounding is required. For example, 5.78% would be entered as "5.8". Evans Company Quality Cost Report Prevention costs: Quality circles Prototype inspection Appraisal costs: Field testing Packaging inspection Internal failure costs: Design changes Downtime External failure costs: Returns/allowances Complaint adjustment Total quality costs For the Year Ended 20x5 Quality Costs Total Percentage of Sales % %
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