In response to intense foreign competition, Florex Company has taken steps to improve the quality of...
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In response to intense foreign competition, Florex Company has taken steps to improve the quality of its products. A summary of its quality costs (in thousands) over the past two years is given below: Costs (in thousands) Last Year This Year $ 900 $ 1,701 Inspection Quality engineering Depreciation of test equipment Rework labor Statistical process control Cost of field servicing Supplies used in testing Systems development Warranty repairs Net cost of scrap Product testing Product recalls Disposal of production defects $ 270 $ 675 $ 675 $ 270 $ 990 $ 1,620 $ 0 $ 225 $ 1,350 $ 45 $ 630 $ 3,825 $ 810 $ 1,080 $ 1,080 $ 54 $ 900 $ 1,530 $ 1,080 $ 1,350 $ 3,105 $ 990 $ 720 $ 1,080 Sales have been flat over the past few years, at $90,000,000 per year. Required: 1. Prepare a quality cost report for this year and last year. Note: Enter amount values in thousands. Round your percentage answers to 2 decimal places (i.e 0.1234 should be entered as 12.34). Prevention costs: Total prevention costs Appraisal costs Total appraisal costs Internal failure costs: Florex Company Quality Cost Report Last Year This Year Amount (in thousands) Percent of Amount (in Percent of Sales thousands) Sales 0 0.00 0 0.00 0.00 0 0.00 Total internal failure costs 0 0.00 0 0.00 In response to intense foreign competition, Florex Company has taken steps to improve the quality of its products. A summary of its quality costs (in thousands) over the past two years is given below: Costs (in thousands) Last Year This Year $ 900 $ 1,701 Inspection Quality engineering Depreciation of test equipment Rework labor Statistical process control Cost of field servicing Supplies used in testing Systems development Warranty repairs Net cost of scrap Product testing Product recalls Disposal of production defects $ 270 $ 675 $ 675 $ 270 $ 990 $ 1,620 $ 0 $ 225 $ 1,350 $ 45 $ 630 $ 3,825 $ 810 $ 1,080 $ 1,080 $ 54 $ 900 $ 1,530 $ 1,080 $ 1,350 $ 3,105 $ 990 $ 720 $ 1,080 Sales have been flat over the past few years, at $90,000,000 per year. Required: 1. Prepare a quality cost report for this year and last year. Note: Enter amount values in thousands. Round your percentage answers to 2 decimal places (i.e 0.1234 should be entered as 12.34). Prevention costs: Total prevention costs Appraisal costs Total appraisal costs Internal failure costs: Florex Company Quality Cost Report Last Year This Year Amount (in thousands) Percent of Amount (in Percent of Sales thousands) Sales 0 0.00 0 0.00 0.00 0 0.00 Total internal failure costs 0 0.00 0 0.00
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To prepare the quality cost report for Florex Company for last year and this year we need to categorize the costs into prevention costs appraisal cost... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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