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Walton Company has measured its quality costs for the past two years. After the company gathers its quality cost data, it summarizes those costs using the four categories shown below: Prevention costs Appraisal costs Internal failure costs External failure costs Last Year $ 353,400 $ 445,000 $766,300 $ 1,034,000 This Year $ 611,000 $ 528,700 $ 550,000 $ 714,000 Required: 1. Calculate the total cost of quality last year and this year. 2. For last year, calculate the cost in each of the four categories as a percent of the total cost of quality. 3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. 4-a. Calculate the change in total cost of quality over the two-year period. 4-b. Is performance trending in a favorable or unfavorable direction?

Walton Company has measured its quality costs for the past two years. After the company gathers its quality cost data, it summarizes those costs using the four categories shown below: Prevention costs Appraisal costs Internal failure costs External failure costs Last Year $ 353,400 $ 445,000 $766,300 $ 1,034,000 This Year $ 611,000 $ 528,700 $ 550,000 $ 714,000 Required: 1. Calculate the total cost of quality last year and this year. 2. For last year, calculate the cost in each of the four categories as a percent of the total cost of quality. 3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. 4-a. Calculate the change in total cost of quality over the two-year period. 4-b. Is performance trending in a favorable or unfavorable direction?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Walton Company has measured its quality costs for the past two years. After the company gathers its quality cost data, it summarizes those costs using the four categories shown below: Prevention costs Appraisal costs Internal failure costs External failure costs Required: 1. Calculate the total cost of quality last year and this year. 2. For last year, calculate the cost in each of the four categories as a percent of the total cost of quality. 3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. 4-a. Calculate the change in total cost of quality over the two-year period. 4-b. Is performance trending in a favorable or unfavorable direction? Required 1 Last Year $ 353,400 $ 445,000 $ 766,300 $ 1,034,000 Complete this question by entering your answers in the tabs below. Required 2 Prevention costs Appraisal costs Internal failure costs External failure costs Total percent This Year $ 611,000 $ 528,700 $ 550,000 $ 714,000 Required 3 Required 4A Required 4B For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. Note: Round your answers to 1 decimal place. This Year % % % Required AA
Transcribed Image Text:Walton Company has measured its quality costs for the past two years. After the company gathers its quality cost data, it summarizes those costs using the four categories shown below: Prevention costs Appraisal costs Internal failure costs External failure costs Required: 1. Calculate the total cost of quality last year and this year. 2. For last year, calculate the cost in each of the four categories as a percent of the total cost of quality. 3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. 4-a. Calculate the change in total cost of quality over the two-year period. 4-b. Is performance trending in a favorable or unfavorable direction? Required 1 Last Year $ 353,400 $ 445,000 $ 766,300 $ 1,034,000 Complete this question by entering your answers in the tabs below. Required 2 Prevention costs Appraisal costs Internal failure costs External failure costs Total percent This Year $ 611,000 $ 528,700 $ 550,000 $ 714,000 Required 3 Required 4A Required 4B For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. Note: Round your answers to 1 decimal place. This Year % % % Required AA
Walton Company has measured its quality costs for the past two years. After the company gathers its quality cost data, it summarizes those costs using the four categories shown below: Prevention costs Appraisal costs Internal failure costs External failure costs Last Year $ 353,400 $ 445,000 $ 766,300 $ 1,034,000 This Year $ 611,000 $ 528,700 $ 550,000 $ 714,000 Required: 1. Calculate the total cost of quality last year and this year. 2. For last year, calculate the cost in each of the four categories as a percent of the total cost of quality. 3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. 4-a. Calculate the change in total cost of quality over the two-year period. 4-b. Is performance trending in a favorable or unfavorable direction? Required 1 Required 2 Complete this question by entering your answers in the tabs below. Required 3 Required 4A Required 4B Calculate the change in total cost of quality over the two-year period. Prevention and appraisal activities Internal and external failure costs The total cost of quality
Transcribed Image Text:Walton Company has measured its quality costs for the past two years. After the company gathers its quality cost data, it summarizes those costs using the four categories shown below: Prevention costs Appraisal costs Internal failure costs External failure costs Last Year $ 353,400 $ 445,000 $ 766,300 $ 1,034,000 This Year $ 611,000 $ 528,700 $ 550,000 $ 714,000 Required: 1. Calculate the total cost of quality last year and this year. 2. For last year, calculate the cost in each of the four categories as a percent of the total cost of quality. 3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. 4-a. Calculate the change in total cost of quality over the two-year period. 4-b. Is performance trending in a favorable or unfavorable direction? Required 1 Required 2 Complete this question by entering your answers in the tabs below. Required 3 Required 4A Required 4B Calculate the change in total cost of quality over the two-year period. Prevention and appraisal activities Internal and external failure costs The total cost of quality
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