Question

In: Accounting

X Company has the following information available for the year 2014: Quality engineering of products &nbsp

X Company has the following information available for the year 2014:

Quality engineering of products $20,000

Quality training of employees $2,000

Net cost of scrap $30,000

Rework labor $4,500

Warranty repairs $100,000

Product recalls $200,000

Liability arising from defective products $1,000,000

Maintenance of test equipment $44,000

Quality improvement projects $55,000

Setups for testing $3,000

Supplies used in testing $5,500

Downtime caused by defects $70,000

Disposal of defective products $80,000

Sales revenue $5,000,000

Required:

a. Prepare the quality cost report.

b. what are your recommendations to control quality costs?

c. Explain the uses and limitations of a cost of quality report.

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ekkarill92 answered 2 years ago

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