Quality Cost Report Evans Company had total sales of $4,500,000 for fiscal 20x5. The costs...
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Accounting
Quality Cost Report
Evans Company had total sales of $4,500,000 for fiscal 20x5. The costs of quality-related activities are given below.
Returns/allowances
$180,000
Design changes
315,000
Prototype inspection
13,500
Downtime
247,500
Quality circles
18,000
Packaging inspection
18,000
Field testing
9,000
Complaint adjustment
292,500
Required:
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 20x5
Quality Costs
Total
Percentage of Sales
Prevention costs:
Quality circles
$
Design changes
$
%
Appraisal costs:
Prototype inspection
$
Packaging inspection
Internal failure costs:
Field testing
$
Downtime
External failure costs:
Returns/allowances
$
Complaint adjustment
Total quality costs
$
%
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