Whitley Company had total sales of $1,000,000 for the year ending 20X1. The costs of quality are given below.
| Returns/allowances | $50,000 | ||
| Design changes | 60,000 | ||
| Prototype inspection | 13,000 | ||
| Downtime | 40,000 | ||
| Quality circles | 2,000 | ||
| Packaging inspection | 14,000 | ||
| Field testing | 6,000 | ||
| Complaint adjustment | 65,000 |
Required:
1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. Round your percentages to two decimal places.
| Whitley Company | |||
| Quality Cost Report | |||
| For the Year Ended 20X1 | |||
| Quality Costs | Percentage of sales | ||
| Prevention costs: | |||
| Quality circles | $ | ||
| Prototype inspection | % | ||
| Appraisal costs: | |||
| Field testing | $ | ||
| Packaging inspection | |||
| Internal failure costs: | |||
| Design changes | $ | ||
| Downtime | |||
| External failure costs: | |||
| Returns/allowances | $ | ||
| Complaint adjustment | |||
| Total quality costs | $ | ||
