ACCT3032TuteSols70.pdf - 278 Award 1.00 point The following...

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Unformatted text preview: 278. Award: 1.00 point The following represents the financial information of Madison Tool Corporation, a manufacturer of testing equipment: Customer complaints Field testing Materials inspection Preventive maintenance Process inspection Quality training Rework Scrap Testing equipment Warranty repairs May $ 11,200 37,600 26,000 54,000 6,600 75,200 68,000 7,400 28,000 17,200 Required: a. Classify these items into prevention, appraisal, internal failure, or external failure costs. Determine the total cost of each category. a. Prevention: Process inspection, quality training, testing equipment, preventive maintenance, and materials inspection: $189,800 Appraisal: Field testing: $37,600 Internal failure: Scrap, rework: $75,400 External failure: Customer complaints, warranty repairs: $28,400 Customer complaints Field testing Materials inspection Preventive maintenance Process inspection Quality training Rework Scrap Testing equipment Warranty repairs May 11,200 37,600 26,000 54,000 6,600 75,200 68,000 7,400 28,000 17,200 Prev 26,000 54,000 6,600 75,200 28,000 Appr 37,600 Int Fail 68,000 7,400 Ext Fail 11,200 17,200 331,200 189,800 37,600 75,400 28,400 References Essay Difficulty: 2 Medium Learning Objective: 10-08 Compare the costs of quality control to the costs of failing to control quality. 279. Award: 1.00 point The following represents quality cost data for Monnett Corporation: Field testing Finished goods inspection Materials inspection Preventive maintenance Process inspection Product design Product liability insurance Quality training Rework Scrap Testing equipment Warranty repairs $ 67,100 48,700 37,000 54,000 46,900 96,700 48,000 75,200 68,000 17,400 36,000 77,200 Required: a. Classify these items into prevention, appraisal, internal failure, or external failure costs. Determine the total cost of each category. a. Prevention: Materials inspection, preventive maintenance, process inspection, product design, quality training, and testing equipment: $345,800 Appraisal: Field testing, Finished goods inspection: $115,800 Internal failure: Scrap, rework: $85,400 External failure: Product liability insurance, warranty repairs: $125,200 Field testing Finished goods inspection Materials inspection Preventive maintenance Process inspection Product design Product liability insurance Quality training Rework Scrap Testing equipment Warranty repairs May 67,100 48,700 37,000 54,000 46,900 96,700 48,000 75,200 68,000 17,400 36,000 77,200 Prev 37,000 54,000 46,900 96,700 75,200 36,000 Appr 67,100 48,700 Int Fail 68,000 17,400 Ext Fail 48,000 77,200 672,200 345,800 115,800 85,400 125,200 References Essay Difficulty: 2 Medium Learning Objective: 10-08 Compare the costs of quality control to the costs of failing to control quality. ...
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