Cass Company has recorded the following information for the last six months of operations from...
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Accounting
Cass Company has recorded the following information for the last six months of operations from its cost of quality system:
| Quarter 1 | Quarter 2 | |
|---|---|---|
| Revenue | $ 760,000 | $ 920,000 |
| Costs | ||
| Warranty expense | $ 15,200 | $ 13,800 |
| Machine calibration | 3,800 | 7,360 |
| Customer returns (defects) | 22,800 | 18,400 |
| Material inspection on receiving dock | 9,120 | 5,520 |
| Waste | 19,000 | 14,720 |
| Quality testing equipment | 18,700 | 11,700 |
| Rework | 2,280 | 3,650 |
| Inspection before packaging | 7,600 | 8,900 |
| Training on testing equipment | 6,200 | 9,000 |
Required:
a. Classify these items into prevention, appraisal, internal failure, or external failure costs.
b. Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for Quarter 1 and Quarter 2.
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