Question

Kang Company reported sales of $3,240,000 in 2015. At the end of the calendar year, the following quality costs were reported:
Design review ....... $162,000
Recalls ........... 54,000
Reinspection ....... 27,000
Materials inspection ... 21,600
Quality training ... 54,000
Process acceptance ... 27,000
Scrap .......... 18,900
Lost sales ....... 108,000
Product inspection ... 16,200
Returned goods ... 51,300
Required:
1. Prepare a quality cost report.
2. Prepare a graph (pie chart or bar graph) that shows the relative distribution of quality costs, and comment on the distribution.


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  • CreatedSeptember 01, 2015
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