USA: +1 725-224-8795 
Sign in
Whitley Company had total sales of $1,000,000 for the year ending 20X1. The costs of quality are given below.
| Returns/allowances | $50,000 | ||
| Design changes | 60,000 | ||
| Prototype inspection | 13,000 | ||
| Downtime | 40,000 | ||
| Quality circles | 2,000 | ||
| Packaging inspection | 14,000 | ||
| Field testing | 6,000 | ||
| Complaint adjustment | 65,000 |
Required:
Don't use plagiarized sources. Get Your Custom Essay on
Question & Answer: repare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. Round your percentages to two decimal places……
GET AN ESSAY WRITTEN FOR YOU FROM AS LOW AS $13/PAGE
1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. Round your percentages to two decimal places.
| Whitley Company | |||
| Quality Cost Report | |||
| For the Year Ended 20X1 | |||
| Quality Costs | Percentage of sales | ||
| Prevention costs: | |||
| Quality circles | $ | ||
| Prototype inspection | % | ||
| Appraisal costs: | |||
| Field testing | $ | ||
| Packaging inspection | |||
| Internal failure costs: | |||
| Design changes | $ | ||
| Downtime | |||
| External failure costs: | |||
| Returns/allowances | $ | ||
| Complaint adjustment | |||
| Total quality costs | $ | % | |
Expert Answer
Answer :- Quality cost report
| Particulars | Quality costs | Percentage of sales |
| 1). Prevention costs
Quality circles Prototype inspection |
2000
13000 |
0.20 % (100 * 2000 / 1000000)
1.30 % (100 * 13000 / 1000000) |
| 2). Appraisal costs
Field Testing Packaging inspection |
6000
14000 |
0.60 % (100 * 6000 / 1000000)
1.40 % (100 * 14000 / 1000000) |
| 3). Internal failure costs
Design changes Downtime |
60000
40000 |
6.00 % (100 * 60000 / 1000000)
4.00 % (100 * 40000 / 1000000) |
| 4). External failure costs
Returns / allowances Complaint adjustment |
50000
65000 |
5.00 % (100 * 50000 / 1000000)
6.50 % (100 * 65000 / 1000000) |
| Total quality costs | 250000 | 25.00 % |
