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HW2
aliqua as is ons
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\hline \multicolumn{2}{|c...
Mar 25, 2024
HW2
aliqua as is ons
\begin{tabular}{|c|c|c|c|c|c|}
\hline \multicolumn{2}{|c|}{ bisculsinems. } & \multicolumn{2}{|c|}{ Takin proses ivionon. } & \\
\hline 4. & 31,992 & \begin{tabular}{l}
Lxian \\
Hira! \\
pua!
\end{tabular} & 124.80 & 12:6, & issan \\
\hline
\end{tabular}
scith.
linitim.
Hey Ric! It looks like you have a question about your HW2 assignment. Let's break it down together. The table you provided seems to have some data related to "bisculsinems" and "Takin proses ivionon." It looks like you have numbers like 31,992 and 124.80 in there. Can you provide more context or clarify what specific information you need help with? Let's work through it together!
HW2
Q. A number of activities that are a part of a company's quality control system are listed below.
Classify the costs associated with each of these activities into the four types of costs.
Internal External
Prevention Appraisal Failure Failure
a. Product testing
Cost
Cost
Cost
cost
b. Product recalls.
c. Rework labor and overhead.
d. Quality circles.
e. Downtime caused by defects.
f. Cost of field servicing................
g. Inspection of goods
h. Quality engineering.
I. Warranty repairs.
j. Statistical process control
k. Net cost of scrap
l. Depreciation of test equipment.
m. Returns and allowances arising from poor quality...
n. Disposal of defective products
o. Technical support to suppliers
p. Systems development
q. Warranty replacements
r. Field testing at customer site
s. Product design
(Required)
Q. Beginning raw materials inventory was $32,000. During the month, $276,000 of raw material was purchased. A count at the end of the month revealed that $28,000 of raw material was still present. What is the cost of direct material used?
Answer
The costs associated with each activity are classified into the four types of quality costs: Prevention, Appraisal, Internal Failure, and External Failure.
Solution
a
Product testing is typically considered an Appraisal cost because it is part of the quality control process that assesses products to ensure they meet the required standards
b
Product recalls are an External Failure cost because they occur after the product has been delivered to the customer and a defect has been identified
c
Rework labor and overhead are Internal Failure costs because they are incurred to fix defects before products are shipped to customers
d
Quality circles are a form of Prevention cost because they are groups that meet regularly to discuss ways of improving products or processes
e
Downtime caused by defects is an Internal Failure cost because it represents lost productivity within the company due to defective products
f
Cost of field servicing is an External Failure cost because it involves servicing products that have already been delivered to the customer
g
Inspection of goods is an Appraisal cost because it is part of the process of evaluating products to ensure they meet quality standards
h
Quality engineering is a Prevention cost because it involves designing processes to prevent defects from occurring
i
Warranty repairs are an External Failure cost because they are repairs made after the product has been delivered to the customer
j
Statistical process control is a Prevention cost because it is used to monitor and control a process to ensure that it operates at its full potential
k
Net cost of scrap is an Internal Failure cost because it represents the value of materials that cannot be used due to defects
l
Depreciation of test equipment is an Appraisal cost because the equipment is used to assess the quality of products
m
Returns and allowances arising from poor quality are an External Failure cost because they are concessions made to customers due to defective products
n
Disposal of defective products is an Internal Failure cost because it involves getting rid of products that cannot be sold due to quality issues
o
Technical support to suppliers is a Prevention cost because it helps suppliers improve their processes to prevent defects
p
Systems development is a Prevention cost because it involves creating systems that ensure quality throughout the production process
q
Warranty replacements are an External Failure cost because they involve replacing defective products after they have been delivered to customers
r
Field testing at customer site is an Appraisal cost because it assesses the product in the actual environment where it will be used
s
Product design is a Prevention cost because it involves creating products in a way that prevents defects and ensures quality
Key Concept
Quality costs are categorized into Prevention, Appraisal, Internal Failure, and External Failure costs.
Explanation
These categories help organizations identify and manage the costs associated with maintaining and improving quality. Prevention costs aim to prevent defects; Appraisal costs assess the quality of products; Internal Failure costs are incurred when defects are found before delivery; External Failure costs occur when defects are found after delivery to the customer.
Answer
The cost of direct material used is $280,000.
Solution
a
Calculate the cost of materials available for use: Add the beginning inventory to the purchases made during the month. Materials available for use=Beginning inventory+Purchases Materials available for use=$32,000+$276,000 Materials available for use=$308,000
b
Calculate the cost of direct material used: Subtract the ending inventory from the materials available for use. Cost of direct material used=Materials available for use−Ending inventory Cost of direct material used=$308,000−$28,000 Cost of direct material used=$280,000
Key Concept
The cost of direct material used is calculated by adding the beginning inventory to the purchases and subtracting the ending inventory.
Explanation
This calculation provides the value of the materials that were actually used in production during the period. It is an important figure for cost accounting and managing inventory levels.
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