MKD Company's quality cost report is to be based on the following data:3,550,000Test and inspection of incoming materialsSupplies used in testing and inspection2,550,000Re-entering data because of keying errorsStatistical process control activitiesTechnical support provided to suppliers3,000,0004,100,0004,550,000Disposal of defective productsLost sales due to poor quality3,000,0004,350,000Net cost of crap4,250,000Warranty repairs and replacements3,500,000Required:Prepare a Quality Cost Report in good from with separate sections for prevention costs, appraisalcosts, internal failure costs, and external failure costs

The question is related to Quality Cost. The quality cost is classified into two 1. Cost of…

MKD Company's quality cost report is to be based on the following data: Test and inspection of incoming materials Supplies used in testing and inspection Re-entering data because of keying errors Statistical process control activities Technical support provided to suppliers Disposal of defective products Lost sales due to poor quality 3,550,000 2,550,000 3,000,000 4,100,000 4,550,000 3,000,000 4,350,000 Net cost of crap 4,250,000 Warranty repairs and replacements 3,500,000 Required: Prepare a Quality Cost Report in good from with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs

MKD Company's quality cost report is to be based on the following data: Test and inspection of incoming materials Supplies used in testing and inspection Re-entering data because of keying errors Statistical process control activities Technical support provided to suppliers Disposal of defective products Lost sales due to poor quality 3,550,000 2,550,000 3,000,000 4,100,000 4,550,000 3,000,000 4,350,000 Net cost of crap 4,250,000 Warranty repairs and replacements 3,500,000 Required: Prepare a Quality Cost Report in good from with separate sections for prevention costs, appraisal costs, internal failure costs, and 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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Cost of Quality Report This year, Finn Corporation implemented programs designed to assess the costs of quality for the company. However, the company recently suffered a data loss, and some of its records have been either partially or completely erased. The accounting intern for Finn Corporation has located a copy of a recent cost of quality report, shown as follows, but the quality activity analysis used to create the report has been lost. Finn Corporation Cost of Quality Report Percent of Total Percent of Quality Cost Classification Quality Cost Quality Cost Total Sales Prevention $161,040 61% 14.6% Appraisal 42,240 16 3.8 Internal failure 34,320 13 3.1 External failure 26,400 10 2.4 Totals $264,000 100% 24.0% Quality Activity Analysis As mentioned on the Cost of Quality Report, Finn Corporation recently suffered a data loss, and some of its records have been lost. After reviewing the Cost of Quality Report, recreate the quality activity analysis in the following table from which the…
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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 4. Activity rates that will be used to assign environmental costs to products. Design Produts 27 per design hour Testing 18 per test hour Treating waste 45 per pound of waste Operating equipment 9 per machine hour 1. Determine the unit…
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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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The information and data in Tables 1, 2, and 3 will be used to determine cost drivers and calculate overheads. Table 1 (Product information) X Y Z High volume Medium volume Low volume Large batches Medium batches Low batches Few purchaseOrders placed Medium purchaseOrders placed Many purchaseOrders placed Few customerOrders placed Medium customerOrders placed Many customerOrders placed Table 2 (Product Information) X Y Z Total Typical batch size 2000 600 325 No. of production runs 25 50 50 125 No. of inspections 25 50 50 125 Purchase orders placed 25 100 200 325 Customer orders received 10 100 200 310 Table 3 Analysis of indirect labour K'000 K'000 Machining:…
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1. The total failure cost is?
Answers for the direct material and accounts payable are incorrect. Help me find the correct one, please.
Question 3 The Buffalo Machine Sdn. Bhd. was evaluating its cost structure relating to quality costs. Below items are the cost of quality in the year 2020. With this allocation of quality costs, the company lost 20% of sales due to poor performance. To improve the situation, the company would like to perform the cost of quality analysis. Items Product Reliability Test Process Quality Assurance Audit Rework Cost Production Inspection Supplier Quality System Audit Defect Repair Cost Market Defect Cost Sampling Inspection Quality Assurance Training Product Warranty Cost Cost/RM 10000 8500 12000 12000 5500 18000 80000 8000 16000 40000 a) Identify the items for prevention, appraisal, and failure costs. b) Compute the ratio of prevention, appraisal, and failure costs to total quality costs. c) Based on the analysis of the cost of quality, recommend the company's actions to improve the product quality.
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