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A lean manufacturer reports the following quality costs. Prep Training machine operators Product recalls Scrap of defective products Inspecting finished goods Total $50,000 20,000 12,000 18,000 $ 100,000

A lean manufacturer reports the following quality costs. Prep Training machine operators Product recalls Scrap of defective products Inspecting finished goods Total $50,000 20,000 12,000 18,000 $ 100,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 % %
Transcribed Image Text: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 % %
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