Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[The following information applies to the questions displayed below) Acme Materials Company manufactures and sells synthetic coatings that can withstand high temperatures. Its prima customers

image text in transcribed
image text in transcribed
image text in transcribed
[The following information applies to the questions displayed below) Acme Materials Company manufactures and sells synthetic coatings that can withstand high temperatures. Its prima customers are aviation manufacturers and maintenance companies. The following table contains financial informatic pertaining to cost of quality (COQ) in 2019 and 2020 (in thousands of dollars): 2019 $15,000 209 150 150 2020 $19,000 50 Sales Materials inspection In-process (production) inspection Finished product inspection Preventive equipment maintenance Scrap (net) Warranty repairs Product design engineering Vendor certification Direct costs of returned goods Training of factory workers Product testing-equipment maintenance Product testing labor Field repairs Rework before shipment Product liability settlement Emergency repair and maintenance Required: 1. Classify the cost items in the table into cost-of-quality (COQ) categories 2 Calculate the ratio of each COQ category to revenues in each of the 2 years. 3. Calculate the percentage change in each COQ category and total COQ and comment on the results a. Percentage change in total COQ as a percentage of sales, from 2019 to 2020, b. Total COQ in 2020 expressed as a percentage of 2019 sales dollars: c. Percentage change in total prevention costs, 2019 to 2020 d. Percentage change in total appraisal costs, 2019 to 2020: e. Percentage change in total internal failure costs, 2019 to 2020: . Percentage change in total external failure costs, 2019 to 2020 of 3 Req 1 and 2 Req3 Classify the cost items in the table into cost-of-quality (COD) categories. Calculate the ratio of each con category to revenues of the 2 years. (Enter amounts in thousands, not in whole dollar. Round your "Percentage" answers to 2 decimal places.) 2019 % of Sales 2020 % of Sales Amount A mount Book Cost of quality Prevention costs Print eferences Total prevention costs Appraisal costs: % Total appraisal costs Internal fallure costs: Total internal failure costs Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Calculate the percentage change in each COQ category and total coQ and comment on the results: (Round yo decimal places.) 3a Percentage change in total COQ as a percentage of sales, from 2019 to 2020 36. Total Cod in 2020 expressed as a percentage of 2019 sales dollars 30. Percentage change in total prevention costs, 2019 to 2020 3d. Percentage change in total appraisal costs, 2019 to 2020 3e. Percentage change in total internal failure costs, 2019 to 2020 30 Percentage change in total external failure costs, 2019 to 2020

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Information For Decisions

Authors: Thomas L. Albright , Robert W. Ingram, John S. Hill

4th Edition

0324222432, 978-0324222432

More Books

Students also viewed these Accounting questions

Question

Identify the human resource management functions.

Answered: 1 week ago

Question

Describe who performs human resource management activities.

Answered: 1 week ago