Gadsen Company's quality cost report is to be based on the following data: Maintenance of test equipment Quality training Product recalls Quality circles Rework labor and overhead Liability arising from defective products Supervision of testing and inspection activities Re-entering data because of keying errors Supplies used in testing and inspection $ 30,000 $ 99,000 $ 63,000 $ 37,000 $ 54,000 $ 18,000 $ 91,000 $ 65,000 $ 105,000 Required: Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal costs, intern external failure costs.

Gadsen Company's quality cost report is to be based on the following data: Maintenance of test equipment Quality training Product recalls Quality circles Rework labor and overhead Liability arising from defective products Supervision of testing and inspection activities Re-entering data because of keying errors Supplies used in testing and inspection $ 30,000 $ 99,000 $ 63,000 $ 37,000 $ 54,000 $ 18,000 $ 91,000 $ 65,000 $ 105,000 Required: Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal costs, intern external failure costs.

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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Activity-Based Environmental Cost Assignments Pinter Company had the following environmental activities and product information: 1. Environmental activity costs Activity Costs Design products (to reduce pollution) $ 129,600 Test for contamination 230,400 Treat toxic waste 720,000 Operate pollution control equipment 576,000 2. Driver data Solvent X Solvent Y Design hours 2,900 1,900 Testing hours 5,100 7,700 Pounds of waste 600 15,400 Machine hours 2,900 61,100 3. Other production data Solvent X Solvent Y Nonenvironmental production costs $2,176,000 $4,128,000 Units produced 320,000 320,000 What if the design costs increased to $219,600 and the cost of toxic waste decreased to $360,000? Assume that Solvent Y uses 3,800 out of 7,600 design hours. Also assume that waste is cut by 50 percent and that Solvent Y is responsible for…
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