Question

Quality Cost Report

Evans Company had total sales of $2,600,000 for fiscal 20x5. The costs of quality-related activities are given below.

Returns/allowances	$195,000
Design changes	104,000
Prototype inspection	5,200
Downtime	143,000
Quality circles	7,800
Packaging inspection	5,200
Field testing	7,800
Complaint adjustment	195,000

Required:

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 20x5
	Quality Costs	Total	Percentage of Sales
Prevention costs:
	$
		$	%
Appraisal costs:
	$
Internal failure costs:
	$
External failure costs:
	$
Total quality costs		$	%

Answer 1

EVANS COMPANY
QUALITY COST REPORT
FOR THE YEAR ENDED 20**
			Quality cost	Total	Percentage of sales
			$	$	2600000
Prevention Cost :
Design Changes			104000
Quality Circles			7800	111800	4.3
Appraisal Cost
Prototype Inspection			5200
Packaging Inspection			5200
Field testing			7800	18200	0.7
Internal failure Cost
Downtime			143000	143000	5.5
External Failure Cost
Return /Allowance			195000
Complaint Adjustment			195000	390000	15
TOTAL Quality cost				663000	25.5

Kindly give your feedback