70.2K

Verified Solution

Link Copied!

Cornerstone Exercise 14.1 (Algorithmic) Quality Cost Report

Evans Company had total sales of $2,500,000 for fiscal 2015. The costs of quality-related activities are given below.

Returns/allowances	$187,500
Design changes	137,500
Prototype inspection	12,500
Downtime	137,500
Quality circles	10,000
Packaging inspection	10,000
Field testing	7,500
Complaint adjustment	200,000

Required:

Hide 1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. Round percentages to one decimal place, when rounding is required. For example, 5.78% would be entered as "5.8". Evans Company Quality Cost Report For the Year Ended 2015 Quality Costs Total Percentage of Sales Prevention costs: $ $ % Appraisal costs: $ Internal failure costs: $ External failure costs: $ Total quality costs $ %

Answer & Explanation Solved by verified expert

See Answer