Wood Corp manufactures doors. Classify each of the following quality costs as prevention costs, appraisal...
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Accounting
Wood Corp manufactures doors. Classify each of the following quality costs as prevention costs, appraisal costs, internal failure costs, or external failure costs by preparing a Cost of Quality Report. Determine the amount of costs of each of the four major categories of the cost of Quality.
|
| 2021 |
| 2020 |
| Retesting of reworked products | 15,000 |
| 12,000 |
| Downtime due to quality problems | 6,000 |
| 10,000 |
| Depreciation of test equipment | 5,000 |
| 5,000 |
| Warranty repairs | 3,500 |
| 20,000 |
| Lost sales arising from a reputation for poor quality | 4,000 |
| 22,000 |
| Quality circles | 4,000 |
| 1,000 |
| Rework direct manufacturing labor and overhead | 7,500 |
| 10,000 |
| Net cost of spoilage | 3,600 |
| 3,700 |
| Tech support provided to suppliers | 6,500 |
| 2,000 |
| Plant utilities in the inspection area | 2,500 |
| 2,400 |
| Reentering data because of keypunch errors | 2,500 |
| 4,500 |
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