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Category > Accounting Posted 13 Jul 2017 My Price 6.00

quality. Cool Corporation

22.    Costs of quality. Cool Corporation manufactures freezers. The following table presents financial information for two years.

 

 

Year 1

Year 2

Sales  ...................................................................................................................

$2,450,000

$2,200,000

Quality Costs:

 

 

Quality   training...........................................................................................

16,500

18,800

Scrap  ..............................................................................................................

18,500

19,300

Production  process  design .......................................................................

198,000

130,000

Repair of returned goods..........................................................................

43,000

48,000

Rework (goods spoiled during  production)..........................................

170,000

185,000

Preventive maintenance............................................................................

135,000

95,000

Materials inspection...................................................................................

65,000

48,000

Finished product testing...........................................................................

94,000

124,000

 

a.    Classify the above costs into prevention, appraisal, internal failure, or external failure costs.

b.    Calculate the percentage of each prevention, appraisal, internal failure, and external failure cost to sales for Year 1 and Year 2.

Answers

Maurice Tutor
(5)
Status NEW Posted 13 Jul 2017 10:07 AM My Price 6.00

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