Cost of Quality Report This year, Finn Corporation implemented programs designed to assess the costs of quality for the company. However, the company recently suffered a data loss, and some of its records have been either partially or completely erased. The accounting intern for Finn Corporation has located a copy of a recent cost of quality report, shown as follows, but the quality activity analysis used to create the report has been lost. Finn Corporation Cost of Quality Report Quality Cost Classification Quality Cost Percent of Total Quality Cost Percent of Total Sales Prevention $198,400 62% 12.4% Appraisal 54,400 17 3.4 Internal failure 38,400 12 2.4 External failure 28,800 9 1.8 Totals $320,000 100% 20.0% Quality Activity Analysis As mentioned on the Cost of Quality Report, Finn Corporation recently suffered a data loss, and some of its records have been lost. After reviewing the Cost of Quality Report, recreate the quality activity analysis in the following table from which the cost of quality report was created. Quality Control Activities Activity Cost Rework Inspecting incoming raw materials Warranty work Process improvement effort Total activity cost $320,000
Hello! Please help me answer the question and activity costs. they are both in bold. Thank you!! :)
Selecting Chart of Accounts
The company’s accounting intern is new and has confused the Finn Corporation’s regular chart of accounts with the proposed chart of accounts for the lean accounting system.
Review the charts of accounts on the Chart of Accounts I and Chart of Accounts II, and then answer the following question.
Which chart of accounts should Finn Corporation most likely implement if they want to use lean accounting principles? (chart of accounts I, chart of accounts II, both will work equally well)
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Cost of Quality Report
This year, Finn Corporation implemented programs designed to assess the costs of quality for the company. However, the company recently suffered a data loss, and some of its records have been either partially or completely erased. The accounting intern for Finn Corporation has located a copy of a recent cost of quality report, shown as follows, but the quality activity analysis used to create the report has been lost.
| Finn Corporation Cost of Quality Report |
|||
Quality Cost Classification |
Quality Cost |
Percent of Total Quality Cost |
Percent of Total Sales |
| Prevention | $198,400 | 62% | 12.4% |
| Appraisal | 54,400 | 17 | 3.4 |
| Internal failure | 38,400 | 12 | 2.4 |
| External failure | 28,800 | 9 | 1.8 |
| Totals | $320,000 | 100% | 20.0% |
Quality Activity Analysis
As mentioned on the Cost of Quality Report, Finn Corporation recently suffered a data loss, and some of its records have been lost. After reviewing the Cost of Quality Report, recreate the quality activity analysis in the following table from which the cost of quality report was created.
| Quality Control Activities | Activity Cost | |
| Rework | ||
| Inspecting incoming raw materials | ||
| Warranty work | ||
| Process improvement effort |
|
|
| Total activity cost | $320,000 |
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