The following represents the financial information for Domingo Corporation for two months. March April Sales revenue $ 540,000 $ 430,000 Costs Process inspection $ 1,500 $ 1,840 Scrap 1,940 1,870 Quality training 19,500 13,500 Warranty repairs 4,200 5,100 Product testing equipment 6,600 7,100 Customer complaints 2,900 3,100 Rework 16,000 19,500 Preventive maintenance 12,700 10,200 Materials inspection 7,400 5,000 Field testing 8,600 11,600 Required: a. Classify these items into Prevention,...

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Accounting

The followingrepresents the financial information for Domingo Corporation fortwo months.
March April
Salesrevenue $ 540,000 $ 430,000
Costs
Processinspection $ 1,500 $ 1,840
Scrap 1,940 1,870
Qualitytraining 19,500 13,500
Warrantyrepairs 4,200 5,100
Product testingequipment 6,600 7,100
Customercomplaints 2,900 3,100
Rework 16,000 19,500
Preventivemaintenance 12,700 10,200
Materialsinspection 7,400 5,000
Fieldtesting 8,600 11,600

Required:
a.Classify these items into Prevention, Appraisal, Internal failure,or External failure costs.
The followingrepresents the financial information for Domingo Corporation fortwo months.
March April
Salesrevenue $ 540,000 $ 430,000
Costs
Processinspection $ 1,500 $ 1,840
Scrap 1,940 1,870
Qualitytraining 19,500 13,500
Warrantyrepairs 4,200 5,100
Product testingequipment 6,600 7,100
Customercomplaints 2,900 3,100
Rework 16,000 19,500
Preventivemaintenance 12,700 10,200
Materialsinspection 7,400 5,000
Fieldtesting 8,600 11,600

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 March and April.

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Activity Category Process inspection Prevention cost Scrap Internal Failure Cost Quality trainning Prevention cost Warranty repairs External failure costs Product testing equipment Appraisal Cost Customer complaints See Answer

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	March		April
Salesrevenue	$	540,000	$	430,000
Costs
Processinspection	$	1,500	$	1,840
Scrap		1,940		1,870
Qualitytraining		19,500		13,500
Warrantyrepairs		4,200		5,100
Product testingequipment		6,600		7,100
Customercomplaints		2,900		3,100
Rework		16,000		19,500
Preventivemaintenance		12,700		10,200
Materialsinspection		7,400		5,000
Fieldtesting		8,600		11,600