Cornerstone Exercise 14.1 (Algorithmic) Quality Cost Report

Evans Company had total sales of $1,100,000 for fiscal 2015. The costs of quality-related activities are given below.

Returns/allowances	$55,000
Design changes	60,500
Prototype inspection	2,200
Downtime	77,000
Quality circles	4,400
Packaging inspection	2,200
Field testing	2,200
Complaint adjustment	77,000

Required:

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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				$		%