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Quality Cost Report Castledale Company reported sales of $7,000,000 in 20x1. At the end of the fiscal year (September 30, 20X1), the following quality
Quality Cost Report Castledale Company reported sales of $7,000,000 in 20x1. At the end of the fiscal year (September 30, 20X1), the following quality costs were reported: Vendor certification $60,900 Warranty 140,000 Rework 175,000 Continuing supplier verification 75,600 Quality training 79,100 Process acceptance 56,000 Design changes Recalls 105,000 126,000 Product inspection Discounts due to defects Required: 64,400 98,000 1. Prepare a quality cost report. Round percentage to two decimals. Castledale Company Quality Cost Report For the Year Ended September 30, 20x1 Quality Costs Quality Costs Percentage of sales Required: 1. Prepare a quality cost report. Round percentage to two decimals. Castledale Company Quality Cost Report For the Year Ended September 30, 20X1 Prevention costs: Appraisal costs: Internal failure costs: Quality Costs Quality Costs Percentage of sales % Internal failure costs: External failure costst Total quality costs 2. Prepare a graph of the total quality costs in your own paper and select the best choice as applicable. Failure costs are almost two-thirds of the total costs. This indicates that there is still ample opportunity for improving quality by investing more in ( the president to see the existing pattern of the quality cost distribution. It certainly reveals a activities. In this case, data visualization imbalance between control and failure costs. 3. Assuming sales of $7,000,000, by how much would profits increase if quality improves so that quality costs are only 3% of sales? Profits would
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