need to check if its correct.

Problem 1A-4 Quality Cost Report (L01-7, LO1-8] In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A statistical process control system has been installed and other steps have been taken to decrease the amount of warranty and other field costs, which have been trending upward over the past several years. Costs relating to quality and quality control over the last two years are given below: Costs (in thousands) This Last Year 750 420 Year 900 570 240 210 1,050 1,500 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 defective products $ $ $ $ $ 5 $ $ $ 1,200 $ $ $ $ $ $ $ $ $ $ $ 180 900 60 750 1,050 1,125 1,200 480 3,600 630 810 2,100 720 $ $ 750 $ 975 Sales have been flat over the past few years, at $75,000,000 per year. A great deal of money has been spent in the effort to upgrade quality, and management is anxious to see whether or not the effort has been effective. Required: 1. Prepare a quality cost report that contains data for both this year and last year. (Enter amount values in thousands. Round your percentage answers to 2 decimal places (i.e 0.1234 should be entered as 12.34).) Florex Company Quality Cost Report Saved Sales have been flat over the past few years, at $75,000,000 per year. A great deal of money has been spent in the effort to upgrade quality, and management is anxious to see whether or not the effort has been effective. Required: 1. Prepare a quality cost report that contains data for both this year and last year. (Enter amount values in thousands. Round your percentage answers to 2 decimal places (ie 0.1234 should be entered as 12.34).) Florex Company Quality Cost Report Last Year Amount (in Percent of thousands) Sales This Year Amount (in Percent of thousands) Sales 420 570 0 180 0.56 0.00 0.64 1.20 480 900 0.76% 0.24 1.00 2.00 750 1,500 750 Prevention costs: Quality engineering Statistical process control Systems development Total prevention costs Appraisal costs Inspection Depreciation of test equipment Supplies used in testing Product testing Total appraisal costs Internal failure costs Rework labor Net cost of scrap Disposal of defective products Total internal failure costs External failure costs 210 30 810 1.800 0.01 0.28 0.04 1.08 1.41 900 240 60 1.200 2.400 1.20 0.32 0.08 1.60 3.20 1.050 0.14 630 1,500 1.125 975 3.600 0.84 0.96 1.94 2.00 1.50 1.30 4.80 720 2.400 Prey 3 of 3 !!! Next Saved Quality Cost Report Last Year This Year Amount (in Percent of Amount in Percent of thousands) Sales thousands) Sales $ 420 0.56 570 0 0.76 % 0.24 180 480 0.00 0.64 1.20 750 900 1.00 200 1,500 0.01 900 750 210 1.20 0.28 0.32 240 60 30 0.04 0.08 1.08 Prevention costs: Quality engineering Statistical process control Systems development Total prevention costs Appraisal costs Inspection Depreciation of test equipment Supplies used in testing Product testing Total appraisal costs Internal failure costs: Rework labor Net cost of scrap Disposal of defective products Total internal failure costs External failure costs: Cost of field servicing Warranty repairs Product recalls Total external failure costs Total quality cost 810 1,800 1.60 1,200 2,400 1.41 3.20 1.500 0.14 0.84 1,050 630 720 2,400 2.00 1.50 130 4.80 1.125 975 3,600 0.96 1.94 900 1.200 3.600 2.100 6.900 12.000 1.60 4.80 2.80 9.20 13.75 1,050 750 2.700 $ 10,200 1.20 1.40 1.00 3.60 13.60