Required: a. Classify these items into Prevention, Appraisal, Internal failure, or External failure costs. b. Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for year 1 and year 2.
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- Environmental Cost Report Verde Company reported operating costs of $28,000,000 as of December 31, 20x5, with the following environmental costs: Testing for contamination $ 448,000 Inspecting products 448,000 Treating toxic waste 1,316,000 Obtaining ISO 14001 certification 476,000 Designing processes 448,000 Cleaning up oil spills 1,820,000 Maintaining pollution equipment 756,000 Cleaning up contaminated soil 3,024,000 Required: Question Content Area 1. Prepare an environmental cost report, classifying costs by quality category and expressing each as a percentage of total operating costs. Round percentages to two decimal places, if rounding is required. For example, 5.79% would be entered as "5.79". Verde CompanyEnvironmental Cost ReportFor the Year Ended December 31, 20x5 Environmental Cost Total Environmental Cost Percentage of Operating Costs Prevention costs: $- Select - - Select - $- Select - - Select -% Detection costs:…The following represents the financial information for Plaza Plastics for May and June: June $636,000 Sales revenue Costs Scrap Process inspection Quality training Product testing equipment Field testing Warranty repairs Rework Preventive maintenance Legal expense for warranty claims Materials inspection Required A Required B Prevention May $ 843,000 % $ 2,160 3,040 23,940 Required: a. Classify these items into Prevention, Appraisal, Internal failure, or External failure costs. b. Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for May and June. June 5,340 8,580 3,540 Complete this question by entering your answers in the tabs below. % 19,940 16,380 7,980 11,460 Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for May and June. Note: Round your percentage answers to 1 decimal place (i.e., .321 as 32.1). May $ 1,870 1,920 11,880 4,500 6,480 3,240 16,830 8,730 4,500 11,340Environmental Cost Report Verde Company reported operating costs of $56,000,000 as of December 31, 20x5, with the following environmental costs: Testing for contamination $ 672,000 Inspecting products 1,008,000 Treating toxic waste 2,352,000 Obtaining ISO 14001 certification 840,000 Designing processes 784,000 Cleaning up oil spills 4,200,000 Maintaining pollution equipment 1,008,000 Cleaning up contaminated soil 6,216,000 Required: 1. Prepare an environmental cost report, classifying costs by quality category and expressing each as a percentage of total operating costs. Round percentages to two decimal places, if rounding is required. For example, 5.79% would be entered as "5.79". Verde Company Environmental Cost Report For the Year Ended December 31, 20x5 Environmental Cost Total Environmental Cost Percentage of Operating Costs Prevention costs: $fill in the blank 6b95f0094fe707f_2 fill in the blank 6b95f0094fe707f_4 $fill in…
- Cass Company has recorded the following information for the last six months of operations from its cost of quality system: Quarter 1 Quarter 2 Revenue $ 810,000 $ 970,000 Costs Warranty expense $ 16,200 $ 15,800 Machine calibration 4,800 9,360 Customer returns (defects) 23,800 20,400 Material inspection on receiving dock 10,120 7,520 Waste 20,000 16,720 Quality testing equipment 19,700 13,700 Rework 3,280 5,650 Inspection before packaging 8,600 10,900 Training on testing equipment 7,200 11,000 Required: Classify these items into prevention, appraisal, internal failure, or external failure costs. Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for Quarter 1 and Quarter 2.19 Below is the costs related to quality of conformance for Stone Company (in thousands) for 2018. $ Inspection Quality engineering Depreciation of test equipment 900 450 135 Rework labor 1,080 Statistical process control Cost of field servicing 180 1,260 Supplies used in testing Systems development Warranty repairs Net cost of scrap 450 900 4,680 720 Product testing 1,080 Product recalls 2,880 Disposal of defective products 900 $ 15,615 What were the total appraisal costs in 2018? 1,530 1,980 1,665 2,565 E. None of the above А. $ $ $ $ В. С. D.In June Paul CableSource has the following transactions:Purchased $145666 of materials on accountIssued $130000 of material to productionIssued $3333 of supplies from materials inventoryDirect Labor of $69000 was charged to productionPaid $34000 for miscellaneous items for the manufacturing plantRecognized $25000 depreciation for the manufacturing plant.Applied manufacturing overhead for the plantAt beginning of the year management estimated Labor to be $5000000 and overhead to be $4500000.Management applies overhead based on total labor cost based on a predetermined rate using normalcosting beg bal end balMaterial Inventory ? 92000WIP ? 67000FG INV 13455 75644COGS 262100Show the t-accounts for Material, WIP, FG, Cogs, and Applied Overhead and Overhead Control. Is overhead under or overapplied and by how much? Fill in the above amounts for…
- Shaw Company purchased a machine for P 1 260 000 that was placed in service at year – end. The entity incurred additional costs for this machine. Shipping 30 000 Installation 40 000 Testing 50 000 At year end, what amount should be reported as machinery?The Abrams Corporation incurred the following quality costs during the year: Inspections $ 35,400 Training $ 16,700 Quality planning $7,000 Maintenance $10,800 Rework $ 3,850 Warranty $8,690 Testing of equipment $8,000 Scrap $8,000 Lost sales $ 20,600 Downtime $ 10,400 Repairs $ 7,200 What are the total internal failure costs for the Abrams Corporation ?View Policies Current Attempt in Progress Marigold Corporation incurred the following transactions. 1. 2. 3. 4. 5. 6. 7. 8. 1 Purchased raw materials on account $49,100. Raw Materials of $44,200 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $9,900 was classified as indirect materials. Factory labor costs incurred were $61,900. Time tickets indicated that $55,300 was direct labor and $6,600 was indirect labor. Manufacturing overhead costs incurred on account were $81,900. Manufacturing overhead was applied at the rate of 160% of direct labor cost. Goods costing $93,900 were completed and transferred to finished goods. Finished goods costing $76,400 to manufacture were sold. Record the transactions. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45)) ..
- At year-end, Frenzy Company had a fire which completely Problem 13-13 (AICPA Adapted) - destroyed the goods in process inventory. A physical destroyed the goods in process inventory. A physical inventory was taken after the fire. December 31 January 1 Finished goods Goods in process Raw materials Factory supplies 6,000,000 4,300,000 1,700,000 500,000 During the year, the entity reported sales P20,000,000, purchases P3,800,000, freight P200,000, direct labor P5,000,000 and manufacturing overhead at 60% of direct 4,500,000 2,000,000 400,000 labor. The average gross profit rate is 30% on sales.The following represents the financial information for Plaza Plastics for May and June: May June Sales revenue $ 747,000 $ 540,000 Costs Scrap $ 2,000 $ 1,710 Process inspection 2,880 1,760 Quality training 23,780 11,720 Product testing equipment 5,180 4,340 Field testing 8,420 6,320 Warranty repairs 3,380 3,080 Rework 19,780 16,670 Preventive maintenance 16,220 8,570 Legal expense for warranty claims 7,820 4,340 Materials inspection 11,300 11,180 Required: Classify these items into Prevention, Appraisal, Internal failure, or External failure costs. Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for May and JuneSchedule of Activity Costs Quality Control Activities Activity Cost Process audits $50,400 Training of machine operators 26,300 Processing returned products 15,700 Scrap processing (disposal) 24,100 Rework 7,500 Preventative maintenance 28,800 Product design 44,900 Warranty work 9,400 Finished goods inspection 22,300 From the provided schedule of activity costs, determine the non-value-added costs. a.$114,500 b.$56,700 c.$229,400 d.$47,300