In response to intense foreign competition, Florex Company has taken steps to improve the quality of...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/664863132f8aa_98666486312b7e84.jpg)
Transcribed Image Text:
In response to intense foreign competition, Florex Company has taken steps to improve the quality of its products. A summary of its quality costs (in thousands) over the past two years is given below: Costs (in thousands) Last Year This Year Inspection Quality engineering Depreciation of test equipment Rework labor Statistical process control Cost of field servicing Supplies used in testing Systems development Warranty repairs Net cost of scrap Product testing Product recalls Disposal of production defects $ 660 $ 1,215 $ 300 $ 600 $ 300 $ 225 $ 900 $ 0 $ 1,200 $ 30 $ 900 $ 3,375 $ 450 $ 1,110 $ 2,625 $ 1,500 $ 300 $ 1,050 $ 60 $ 750 $ 1,350 $ 900 $ 1,350 $ 750 $ 750 $ 750 Sales have been flat over the past few years, at $75,000,000 per year. Required: 1. Prepare a quality cost report for this year and last year. Note: Enter amount values in thousands. Round your percentage answers to 2 decimal places (i.e 0.1234 should be entered as 12.34). Prevention costs: Statistical process control Total prevention costs Appraisal costs Total appraisal costs Internal failure costs: Disposal of production defects Answer is not complete. Florex Company Quality Cost Report Last Year This Year Amount (in thousands) Percent of Percent Amount (in thousands) Sales of Sales 0 0.00 0 0.00 0 0.00 0 0.00 Total internal failure costs 0 0.00 0 0.00 External failure costs: Warranty repairs Cost of field servicing Total external failure costs 0 0.00 0 0.00 Total quality cost In response to intense foreign competition, Florex Company has taken steps to improve the quality of its products. A summary of its quality costs (in thousands) over the past two years is given below: Costs (in thousands) Last Year This Year Inspection Quality engineering Depreciation of test equipment Rework labor Statistical process control Cost of field servicing Supplies used in testing Systems development Warranty repairs Net cost of scrap Product testing Product recalls Disposal of production defects $ 660 $ 1,215 $ 300 $ 600 $ 300 $ 225 $ 900 $ 0 $ 1,200 $ 30 $ 900 $ 3,375 $ 450 $ 1,110 $ 2,625 $ 1,500 $ 300 $ 1,050 $ 60 $ 750 $ 1,350 $ 900 $ 1,350 $ 750 $ 750 $ 750 Sales have been flat over the past few years, at $75,000,000 per year. Required: 1. Prepare a quality cost report for this year and last year. Note: Enter amount values in thousands. Round your percentage answers to 2 decimal places (i.e 0.1234 should be entered as 12.34). Prevention costs: Statistical process control Total prevention costs Appraisal costs Total appraisal costs Internal failure costs: Disposal of production defects Answer is not complete. Florex Company Quality Cost Report Last Year This Year Amount (in thousands) Percent of Percent Amount (in thousands) Sales of Sales 0 0.00 0 0.00 0 0.00 0 0.00 Total internal failure costs 0 0.00 0 0.00 External failure costs: Warranty repairs Cost of field servicing Total external failure costs 0 0.00 0 0.00 Total quality cost
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
What are four advantages of integrating AI technologies into decision support systems?
-
Creative Confectioners is planning to introduce a new brownie. A small-scale taste test was conducted to assess consumers preferences (Y) with regard to moisture content (X1) and sweetness (X2). Data...
-
The physicians in Problem 3-34 have been approached by a market research firm that offers to perform a study of the market at a fee of $5,000. The market researchers claim their experience enables...
-
Which of the following statements is false? a. A flowchart is an analytical technique used to describe some aspect of an information system in a clear, concise, and logical manner. b. Flowcharts use...
-
Weddings on Demand sells on account and manages its own receivables. Average experience for the past three years has been as follows: Unhappy with the amount of bad debt expense she has been...
-
Vintage Company reports the following information. Compute product cost per unit under variable costing
-
(20 points). Consider again the SR-71 Blackbird. As we discussed, crucial to the aircraft performance was the engine inlet spike assembly, which represented a conical structure located in the center...
-
List the individual financial statements normally included in a complete set and indicate which phrase of the opinion paragraph applies to each statement.
-
Ages of dogs at a rescue facility. In Exercises 714, determine whether the data are qualitative or quantitative. Explain your reasoning.
-
Which of the following is true of audit sampling? a. A sample is less time-consuming and provides less assurance than examining all items in the population. b. A sample is less time-consuming and...
-
Which of the following best illustrates an error caused by sampling? a. A randomly chosen sample may not be representative of the population as a whole on the characteristic of interest. b. An...
-
A CPA s audit report on a client s balance sheet, income statement, and statement of cash flows was sent to the stockholders. The client now wishes to present only the balance sheet along with an...
-
4. A twin-engine aircraft has a weight of 815450N and the wing of the aircraft produces a lift of 806.5kN. The CoG of the aircraft is located at 49% of the MAC, and the distance between the CoG and...
-
ABC company leased new advanced computer equipment to STU Ltd on 1 January 2019.STULtd has to pay annual rental of $290,000 starting at 1 January 2019. It is a four years lease with ultimate rental...
-
What are workers' compensation premiums? Who pays them? Who pays Social Security and Medicare taxes?
-
Jonas Company issues a 90 -day, 12 percent note payable to replace an account payable to Smith Supply Company in the amount of \(\$ 8,000\). Draft the journal entries (in general journal form) to...
-
The 6 percent bonds of Central Gas \& Electric are selling at a market price of 72, whereas the 6 percent bonds of Interstate Power are selling at a price of 97 . Does this mean that Interstate Power...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App