Quality Cost Report

Evans Company had total sales of $2,200,000 for fiscal 20x5. The costs of quality-related activities are given below.

Returns/allowances $154,000 Design changes 99,000 Prototype inspection 6,600 Downtime 88,000 Quality circles 8,800 Packaging inspection 4,400 Field testing 4,400 Complaint adjustment 110,000

Required:

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 For the Year Ended 20x5 Quality Costs Total Percentage of Sales Prevention costs: (compliant adjustment, design changes, downtime, field testing, Quality circles )$ (complaint adjustment, Design changes, downtime, field testing, prototype inspection) $ % Appraisal costs: (complaint adjustment, design changes, downtime, field testing,Prototype inspection ) $ (complaint adjustment, design changes, downtime, Packaging inspection, prototype inspection) Internal failure costs: (complaint adjustment, design changes, Field testing, packaging inspection, prototype inspection) $ (complaint adjustment, Downtime, field testing, packaging inspection , prototype inspection) External failure costs: (design changes, downtime, field testing, packaging inspection, Returns/allowances )$ (Complaint adjustment, design changes, downtime, field testing, packaging inspection) Total quality costs $ %