Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Harwood Company's quality cost report is to be based on the following data: 2021 2022 Depreciation of test equipment $94,000 $95,000 Audits of the effectiveness

Harwood Company's quality cost report is to be based on the following data:

2021 2022

Depreciation of test equipment $94,000 $95,000
Audits of the effectiveness of the quality system $54,000 $51,000
Product recalls $20,000 $30,000
Test and inspection of incoming materials $82,000 $85,000
Re-entering data because of keying errors $11,000 $16,000
Rework labour and overhead $48,000 $54,000
Technical support provided to suppliers $12,000 $10,000
Net cost of scrap $29,000 $33,000
Lost sales due to poor quality $74,000 $84,000

Sales grew from $950,000 in 2021 to $1,000,000 in 2022.

Required:

make a quality cost report in proper order and in good form with separate sections for each of the four types of quality costs with appropriate subtotals and an overall total for both years as well as a percentage of sales column. Carry percentage computations to one decimal place. (15 marks).

Quality Cost Report

2022

%

2021

%

Sales

1,000,000

950,000

Prevention Costs:

Appraisal Costs:

Internal Failure costs:

External failure Costs:

Total

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management and Cost Accounting

Authors: Colin Drury

8th edition

978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887

More Books

Students also viewed these Accounting questions

Question

use method Decreas by half Algorithms to compute a ^ n

Answered: 1 week ago

Question

Propose a reasonable mechanism for the following reaction. OH

Answered: 1 week ago