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Financial & Managerial Accounting
14th Edition
ISBN: 9781337515498
Author: WARREN
Publisher: Cengage
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Question
Chapter 26, Problem 26.16EX
a)
To determine
Lean Manufacturing: Lean manufacturing aims at reducing the cost and minimizing the waste involved in the production, in order to optimize the value for the product or the service.
To Identify: The cost of quality classification for each activity.
b)
To determine
To Prepare: The cost of quality report for Company M, given the sales for the period was $4,000,000(Round percentages to one decimal place).
c)
To determine
To Interpret: The Cost of Quality Report of Company M.
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Students have asked these similar questions
Prepare a cost of quality report. Round the percents of total quality cost to the nearest whole number and the percents of total
sales to one decimal place.
Cost of Quality Report
Percent of Total Quality
Quality Cost Classification
Quality Cost
Percent of Total Sales
Cost
Prevention
Appraisal
Internal failure
External failure
Total
%
1.1.0.0.0
%
%
%
%
%
a. Prepare a production report for the department using the Weighted Average methodand write the resulting journal entry to transfer theinventory to the next department. b. If the company had used the FIFO method, what would the cost per unit have been forMaterials and for Conversion?
Using absorption costing:(i) Calculate the production cost per unit. (ii) Prepare an income statement for the year.
Chapter 26 Solutions
Financial & Managerial Accounting
Ch. 26 - Prob. 1DQCh. 26 - Prob. 2DQCh. 26 - Why is a product-oriented layout preferred by lean...Ch. 26 - Prob. 4DQCh. 26 - Prob. 5DQCh. 26 - Why would a lean manufacturer strive to produce...Ch. 26 - Prob. 7DQCh. 26 - Prob. 8DQCh. 26 - Prob. 9DQCh. 26 - Why is the direct labor cost category eliminated...
Ch. 26 - Prob. 11DQCh. 26 - Prob. 12DQCh. 26 - Prob. 13DQCh. 26 - Lead time Rough Riders Inc. manufactures jeans in...Ch. 26 - Lean features Which of the following are features...Ch. 26 - Lean accounting The annual budgeted conversion...Ch. 26 - Cost of quality report A quality control activity...Ch. 26 - Process activity analysis Roen Company incurred an...Ch. 26 - Prob. 26.1EXCh. 26 - Prob. 26.2EXCh. 26 - Lean principles Active Apparel Company...Ch. 26 - Lead time analysis Palm Pals Inc. manufactures toy...Ch. 26 - Reduce setup time Hammond Inc. has analyzed the...Ch. 26 - Calculate lead time Flint Fabricators Int....Ch. 26 - Calculate lead time Williams Optical Inc. is...Ch. 26 - Prob. 26.8EXCh. 26 - Prob. 26.9EXCh. 26 - Lean principles for a restaurant The management of...Ch. 26 - Prob. 26.11EXCh. 26 - Lean accounting Westgate Inc. uses a lean...Ch. 26 - Lean accounting Modern Lighting Inc. manufactures...Ch. 26 - Lean accounting Vintage Audio Inc. manufactures...Ch. 26 - Pareto chart Meagher Solutions Inc. manufacture....Ch. 26 - Prob. 26.16EXCh. 26 - Pareto chart for a service company Three Rivers...Ch. 26 - Cost of quality and value-added/non-value-added...Ch. 26 - Process activity analysis The Brite Beverage...Ch. 26 - Process activity analysis for a service company...Ch. 26 - Prob. 26.21EXCh. 26 - Prob. 26.1APRCh. 26 - Lead time Sound Tek Inc. manufactures electronic...Ch. 26 - Lean accounting Dashboard Inc. manufactures and...Ch. 26 - Pareto chart and cost of quality report for a...Ch. 26 - Prob. 26.1BPRCh. 26 - Lead time Master Chef Appliance Company...Ch. 26 - Lean accounting Com-Tel Inc. manufactures and...Ch. 26 - Pareto chart and cost of quality report for a...Ch. 26 - Prob. 1ADMCh. 26 - Turn around time in an operating room of a...Ch. 26 - Prob. 3ADMCh. 26 - Ethics in Action In August, Lannister Company...Ch. 26 - Prob. 26.3TIF
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- Cost of quality and value-added/non-value-added reports for a service company A. Using the information in Exercise 17, identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. B. Prepare a cost of quality report. Assume that sales are 3,000,000. (Round percentages to one decimal place.) C. Prepare a value-added/non-value-added analysis. D. Interpret the information in (B) and (C).arrow_forwardQuality Cost Report Loring Company had total sales of 2,400,000 for fiscal 20X1. The costs of quality-related activities are given below. Required: 1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. What message does the cost report provide? 2. Prepare a bar graph and pie chart that illustrate each categorys contribution to total quality costs. Comment on the significance of the distribution.arrow_forwardQuality Cost Report Whitley Company had total sales of 1,000,000 for the year ending 20X1. The costs of quality are given below. Required: 1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. What message does the cost report provide? 2. Prepare a bar graph and pie chart that illustrate each categorys contribution to total quality costs. Comment on the significance of the distribution.arrow_forward
- How do you conclude calculating measuring quality cost to a percentage for the total cost of quality. Percentage cost $357,000. appraisal cost $445,000 internal failure cost $779,000 external failure cost $1,100,00.arrow_forwardIvano Company has collected cost accounting information for the following subset of items forYears 1 and 2. Required:Calculate the values of the missing Items a through e.arrow_forwardClassification of Cost of quality and determine the total amount on each category appropriately: (I) Expediting=3,27,000 (II) Recalls=3,42,000 (III) Line Inspection=2,12,500 (IV) Litigation costs=2,90,500arrow_forward
- How would I prepare a product cost report (with its supporting calculations) for Department 1. Round average cost per equivalent unit to two decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.arrow_forwardThe first step in determining the cost per EUP per cost component under the weighted average method is to * a. add the beginning Work in Process Inventory cost to the current period's production cost.b. divide the current period's production cost by the equivalent units.c. subtract the beginning Work in Process Inventory cost from the current period's production cost.d. divide the current period's production cost into the EUP.arrow_forwardObj. 5, 6 EX 20-22 Variable costing income statement and contribution margin analysis for a service company n The actual and planned data for Underwater University for the Fall term were as follows: Actual Planned Enrollment 4,500 4,125 Tuition per credit hour $120 $135 Credit hours 60,450 43,200 Registration, records, and marketing cost per enrolled student $275 $275 Instructional costs per credit hour Depreciation on classrooms and equipment $64 $60 $825,600 $825,600arrow_forward
- Please refer the queations to the images attached. Thank you. Required: Compute equivalent units of production. Prepare the cost of production. Round total costs to the nearest peso.arrow_forward4. The variable cost per equivalent unit for conversion for the month.5. The total variable cost of goods transferred out.6. The total variable cost of ending work in process inventory. Please explain your work in detail and provide in-text citations. At least six (6) peer-reviewed references are required among which one should be the textbook as source of the data. Include the initial situation and the initial assumptions in your answer.arrow_forward1. Using the weighted average method, prepare the following for Department A: (a) aphysical flow schedule, (b) an equivalent unit calculation, (c) calculation of unit costs(Note: Round to four decimal places.), (d) cost of EWIP and cost of goods transferredout, and (e) a cost reconciliation.2. Prepare journal entries that show the flow of manufacturing costs for Department A. Usea conversion cost control account for conversion costs. Many firms are now combiningdirect labour and overhead costs into one category. They are not tracking direct labourseparately. Offer some reasons for this practice.arrow_forward
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