Cornerstone Exercise 14.1 (Algorithmic) Quality Cost Report

Evans Company had total sales of $2,500,000 for fiscal 2015. The costs of quality-related activities are given below.

Returns/allowances	$187,500
Design changes	137,500
Prototype inspection	12,500
Downtime	137,500
Quality circles	10,000
Packaging inspection	10,000
Field testing	7,500
Complaint adjustment	200,000

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				$		%