FINANCIAL+MANG.-W/ACCESS PRACTICE SET
13th Edition
ISBN: 9781337575614
Author: WARREN
Publisher: CENGAGE L
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Chapter 27, Problem 27.4BPE
To determine
Cost of Quality Report: Cost of quality report is a report which shows the costs involved in reducing the possible faults and improving the quality of the goods produced.
To Prepare: The cost of quality report.
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Cost of Quality Report
A quality control activity analysis indicated the following four activity costs of a hotel:
Inspecting cleanliness of rooms
$86,400
Processing lost customer reservations
28,800
Reworking incorrectly prepared room service meals
115,200
Employee training
57,600
Total
$288,000
Sales are $2,400,000. Prepare a cost of quality report. Round percent of sales to one decimal place.
Quality Cost
Classification
Prevention
Appraisal
Internal failure
External failure
Total
Cost of Quality Report
Quality Cost
$
Percent of Total Percent of
Quality Cost Total Sales
%
%
%
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%
%
%
%
%
%
Cost of Quality Report
A quality control activity analysis indicated the following four activity costs of a hotel:
Inspecting cleanliness of rooms
$167,400
Processing lost customer reservations
55,800
Rework incorrectly prepared room service meal
223,200
Employee training
111,600
Total
$558,000
Sales are $3,100,000. Prepare a cost of quality report. Round percent of sales to one decimal place.
Cost of Quality Report
Quality CostClassification
Quality Cost
Percent of TotalQuality Cost
Percent ofTotal Sales
Prevention
$fill in the blank 1
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Appraisal
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fill in the blank 5%
fill in the blank 6%
Internal failure
fill in the blank 7
fill in the blank 8%
fill in the blank 9%
External failure
fill in the blank 10
fill in the blank 11%
fill in the blank 12%
Total
$fill in the blank 13
fill in the blank 14%
fill in the blank 15%
Cost of Quality Report A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms $67,600 Processing lost customer reservations 16,900 Rework incorrectly prepared room service meal 33,800 Employee training50,700 Total$169,000 Sales are $1,300,000. Prepare a cost of quality report. Round percent of sales to one decimal place. Cost of Quality Report
Chapter 27 Solutions
FINANCIAL+MANG.-W/ACCESS PRACTICE SET
Ch. 27 - Prob. 1DQCh. 27 - Prob. 2DQCh. 27 - Why is a product-oriented layout preferred by lean...Ch. 27 - Prob. 4DQCh. 27 - Prob. 5DQCh. 27 - Why would a lean manufacturer strive to produce...Ch. 27 - Prob. 7DQCh. 27 - Prob. 8DQCh. 27 - Prob. 9DQCh. 27 - Why is the direct labor cost category eliminated...
Ch. 27 - Prob. 11DQCh. 27 - Prob. 12DQCh. 27 - Prob. 13DQCh. 27 - Prob. 27.1APECh. 27 - Prob. 27.1BPECh. 27 - Prob. 27.2APECh. 27 - Lean features Which of the following are features...Ch. 27 - Lean accounting The annual budgeted conversion...Ch. 27 - Prob. 27.3BPECh. 27 - Prob. 27.4APECh. 27 - Prob. 27.4BPECh. 27 - Process activity analysis Lexter Company incurred...Ch. 27 - Prob. 27.5BPECh. 27 - Prob. 27.1EXCh. 27 - Prob. 27.2EXCh. 27 - Lean principles Active Apparel Company...Ch. 27 - Lead time analysis Palm Pals Inc. manufactures toy...Ch. 27 - Reduce setup time Hammond Inc. has analyzed the...Ch. 27 - Calculate lead time Flint Fabricators Int....Ch. 27 - Calculate lead time Williams Optical Inc. is...Ch. 27 - Prob. 27.8EXCh. 27 - Prob. 27.9EXCh. 27 - Prob. 27.10EXCh. 27 - Prob. 27.11EXCh. 27 - Lean principles for a restaurant The management of...Ch. 27 - Prob. 27.13EXCh. 27 - Prob. 27.14EXCh. 27 - Prob. 27.15EXCh. 27 - Prob. 27.16EXCh. 27 - Prob. 27.17EXCh. 27 - Prob. 27.18EXCh. 27 - Prob. 27.19EXCh. 27 - Prob. 27.20EXCh. 27 - Process activity analysis The Brite Beverage...Ch. 27 - Prob. 27.22EXCh. 27 - Prob. 27.23EXCh. 27 - Prob. 27.1APRCh. 27 - Lead time Sound Tek Inc. manufactures electronic...Ch. 27 - Lean accounting Formula One Displays Inc....Ch. 27 - Pareto chart and cost of quality report for a...Ch. 27 - Prob. 27.1BPRCh. 27 - Lead time Master Chef Appliance Company...Ch. 27 - Lean accounting Com-Tel Inc. manufactures and...Ch. 27 - Pareto chart and cost of quality report for a...Ch. 27 - Prob. 27.1CPCh. 27 - Prob. 27.2CPCh. 27 - Prob. 27.3CPCh. 27 - Prob. 27.4CP
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- Cost of Quality Report A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms $97,200 Processing lost customer reservations 48,600 Rework incorrectly prepared room service meal 291,600 Employee training 48,600 Total $486,000 Sales are $2,700,000. Prepare a cost of quality report. Round percent of sales to one decimal place.arrow_forwardCost of Quality Report A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms Processing lost customer reservations Rework incorrectly prepared room service meal Employee training $258,400 193,800 129,200 64,600 $646,000 Sales are $3,400,000. Prepare a cost of quality report. Round percent of sales to one decimal place. Total Quality Cost Classification Prevention Appraisal Internal failure External failure Total Cost of Quality Report Quality Cost Percent of Total Quality Cost % % % % % Percent of Total Sales % % % % %arrow_forward< Cost of Quality Report A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms Processing lost customer reservations Rework incorrectly prepared room service meal Employee training Total Sales are $3,000,000. Prepare a cost of quality report. Round percent of sales to one decimal place. Quality Cost Classification Prevention Appraisal Internal failure External failure Total $ $ Cost of Quality Report Quality Cost Percent of Total Quality Cost % % % % $132,000 33,000 66,000 99,000 $330,000 % Percent of Total Sales % % % % % O Previous Nearrow_forward
- A lean manufacturer reports the following quality costs. Prepare a cost of quality report. $ 50,000 Training machine operators Product recalls 20,000 12,000 18,000 $ 100,000 Scrap of defective products Inspecting finished goods Total Prevention Appraisal Quality Category Internal failure External failure Total cost of quality Cost of Quality Report Cost Category Total % of Total Cost of Quality % % % de se % %arrow_forwardymy wy days in the foowing four activity costs of a notes: Inspecting cleanliness of rooms Processing lost customer reservations Reworking incorrectly prepared room service meals Employee training Total Sales are $2,500,000. Prepare a cost of quality report. Round percent of sales to one decimal place. Quality Cost Classification Prevention Appraisal Internal failure External failure Totals Cost of Quality Report $180,000 60,000 30,000 230,000 $500,000 Quality Cost Percent of Total Percent of Quality Cost Total Salesarrow_forwardCost of Quality Report Meagher Solutions Inc. manufactures memory chips for personal computers. An activity analysis was conducted, and the following activity costs were identified with the manufacture and sale of memory chips: a. Identify the cost of quality classification for each activity. Quality Activities Activity Cost Quality Cost Classification Correct shipment errors $150,000 Disposing of scrap 95,000 Emergency equipment maintenance 125,000 Employee training 50,000 Final inspection 80,000 Inspecting incoming materials 60,000 Preventive equipment maintenance 40,000 Processing customer returns 90,000 Scrap reporting 45,000 Supplier development 15,000 Warranty claims 250,000 Total $1,000,000 b. Prepare a cost of quality report. Assume that the sales for the period were $4,000,000. If required, round percents to one decimal place. Meagher Solutions Inc. Cost of Quality Report Quality…arrow_forward
- < eBook Cost of Quality Report A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms Processing lost customer reservations Rework incorrectly prepared room service meal Employee training Total Quality Cost Classification Sales are $3,500,000. Prepare a cost of quality report. Round percent of sales to one decimal place. Prevention Appraisal Internal failure External failure Show Me How Total Check My Work Cost of Quality Report Quality Cost Percent of Total Percent of Quality Cost Total Sales 1010000 % % % $91,000 182,000 136,500 45,500 $455,000 % % 100000 % % % % % Aarrow_forwardPareto Chart and Cost of Quality Report for a Manufacturing Company The president of Mission Inc. has been concerned about the growth in costs over the last several years. The president asked the controller to perform an activity analysis to gain a better insight into these costs. The result of the activity analysis is summarized as follows: Activities Activity Cost Correcting invoice errors $11,250 Disposing of incoming materials with poor quality 9,000 Disposing of scrap 31,500 Expediting late production 27,000 Final inspection 22,500 Inspecting incoming materials 4,500 Inspecting work in process 22,500 Preventive machine maintenance 15,750 Producing product 67,500 Responding to customer quality complaints 13,500 Total $225,000 The production process is complicated by quality problems, requiring the production manager to expedite production and dispose of scrap. Required: 1. On paper or in a spreadsheet program, prepare a Pareto chart for each of the…arrow_forwardSchedule of Activity Costs Quality Control Activities Product testing Assessing vendor quality Recalls Rework Scrap disposal Product design Training machine operators Warranty work Process audits Activity Cost $55,000 26,000 18,000 29,000 8,000 30,000 46,000 12,000 22,000 From the provided schedule of activity costs, determine the internal failure costs.arrow_forward
- Quality Control Activities Activity Cost Product testing $55,000 Assessing vendor quality 26,000 Recalls 18,000 Rework 29,000 Scrap disposal 8,000 Product design 30,000 Training machine operators 46,000 Warranty work 12,000 Process audits 22,000 From the provided schedule of activity costs, determine the (a) prevention and (b) appraisal costs.a. Prevention costs$b. Appraisal costs$arrow_forwardQuality costs The accounting system for Dolment Co. reflected the following quality costs for Year 1 and Year 2: Customer refunds for poor product quality Fitting machines for mistake-proof operations Supply chain management activities Waste disposal Quality training Litigation claims for product defects Year 1 Year 2 $37,000 $29,000 9,400 11,800 9,000 10,000 44,000 36,000 26,000 30,000 81,000 64,000 a. Which of these are costs of compliance, and which are costs of noncompliance? b. Calculate the percentage change in each cost and for each category. Note: Round each percentage change to the nearest whole percentage. Note: Indicate a decrease with a negative sign. Customer refunds for poor product quality Fitting machines for mistake-proof operations Supply chain management activities Waste disposal Quality training Litigation claims for product defects Compliance cost category Noncompliance cost category Year 1 Year 2 Percentage Change $37,000 $29,000 % 9,400 11,800 % ÷ 9,000 10,000 %…arrow_forwardQuality Control Activities Activity Cost Process audits $50,300 Training of machine operators 27,900 Processing returned products 16,700 Scrap processing (disposal) 25,700 Rework 8,400 Preventative maintenance 27,600 Product design 42,100 Warranty work 6,900 Finished goods inspection 22,500 From the provided schedule of activity costs, determine the prevention costs. a. $97,600 b. $114,300 c. $106,000 d. $55,500arrow_forward
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