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    Tidwell Company Quality Cost Report For The Year Ended December 31, 20X1

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    juri kim
    Tidwell Company's total quality costs for the year ended December 31, 20X1 were $5,586,000 or 15% of total sales. Over half of quality costs (52%) came from internal failure costs like scrap and rework, while external failure costs like warranties and lost sales accounted for 29% and prevention and appraisal costs made up the remaining 19%.

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    Tidwell Company Quality Cost Report For The Year Ended December 31, 20X1

    Uploaded by

    juri kim
    63 views6 pages
    Tidwell Company's total quality costs for the year ended December 31, 20X1 were $5,586,000 or 15% of total sales. Over half of quality costs (52%) came from internal failure costs like scrap and rework, while external failure costs like warranties and lost sales accounted for 29% and prevention and appraisal costs made up the remaining 19%.

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    Ej Malvar

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    Tidwell Company's total quality costs for the year ended December 31, 20X1 were $5,586,000 or 15% of total sales. Over half of quality costs (52%) came from internal failure costs like scrap and rework, while external failure costs like warranties and lost sales accounted for 29% and prevention and appraisal costs made up the remaining 19%.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    63 views6 pages

    Tidwell Company Quality Cost Report For The Year Ended December 31, 20X1

    Uploaded by

    juri kim
    Tidwell Company's total quality costs for the year ended December 31, 20X1 were $5,586,000 or 15% of total sales. Over half of quality costs (52%) came from internal failure costs like scrap and rework, while external failure costs like warranties and lost sales accounted for 29% and prevention and appraisal costs made up the remaining 19%.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 6

    Tidwell Company

    Quality Cost Report


    For the Year Ended December 31, 20X1
       Quality Costs Percentage of Sales
    Prevention Costs:      
    Quality training  ₱ 120,000 ₱ 120,000 0.32%
    Appraisal Costs:      
    Product acceptance ₱ 960,000 ₱ 960,000 2.58%
    Internal Failure Costs:      
    Scrap ₱ 1,800,000    
    Rework ₱ 1,080,000 ₱ 2,880,000 7.73%
    External Failure Costs:      
    Warranties ₱ 360,000    
    Lost Sales ₱ 600,000
    Consumer complaints ₱ 486,000
    Allowances ₱ 180,000 ₱ 1,626,000 4.37%
    Total Quality Costs   ₱ 5,586,000 15.00%

    Tidwell Company
    Quality Cost - Sales Ratio
    For the Year Ended December 31, 20X1
       Quality Costs Percentage of Sales
    Sales revenue: P37,240,000
    Prevention Costs:      
    Quality training  ₱ 120,000 ₱ 120,000 0.32%
    Appraisal Costs:      
    Product acceptance ₱ 960,000 ₱ 960,000 2.58%
    Internal Failure Costs:      
    Scrap ₱ 1,800,000    
    Rework ₱ 1,080,000 ₱ 2,880,000 7.73%
    External Failure Costs:      
    Warranties ₱ 360,000    
    Lost Sales ₱ 600,000
    Consumer complaints ₱ 486,000
    Allowances ₱ 180,000 ₱ 1,626,000 4.37%
    Total Quality Costs   ₱ 5,586,000 15.00%

    Tidwell Company’s Quality Costs Pie Chart


    Prevention Costs ₱ 120,000 2.15%
    Appraisal Costs ₱ 960,000 17.19%
    Internal Failure Costs ₱ 2,880,000 51.56%
    External Failure Costs ₱ 1,626,000 29.11%

    Tidwell Company’s Quality Costs Pie Chart

    2%
    17% Prevention Costs
    29%
    Appraisal Costs
    Internal Failure Costs
    External Failure Costs

    52%
    Tidwell Company
    Quality Cost - Profit Ratio
    For the Year Ended December 31, 20X1
    Quality Cost ₱ 5,586,000
    Net Income ₱ 4,000,000
    Total Quality Cost - Profit Ratio 139.65%

    Particulars Costs Percentage


    Prevention Costs ₱ 120,000 2.15%
    Appraisal Costs ₱ 960,000 17.19%
    Internal Failure Costs ₱ 2,880,000 51.56%
    External Failure Costs ₱ 1,626,000 29.11%
    TOTAL ₱ 5,586,000 100.00%

    Tidwell Company
    Quality Cost Report
    For the Year Ended 20X1
       Control Costs Failure Costs
     Prevention Appraisal Internal
    Repair Costs
    Inspector’s Salary ₱ 960,000
    Quality Defects/Scrapping ₱ 1,800,000
    Cost of Rework ₱ 1,080,000
    Customer Cancellation/Lost Sales
    Customer Complains Handling
    Sales Return and Allowances
    Employee Training ₱ 120,000
    ₱ 120,000 ₱ 960,000 ₱ 2,880,000
    Total
    ₱ 1,080,000 ₱ 4,506,000
    Percentage 19.33% 80.67%
    Failure Costs
    External
    ₱ 360,000

    ₱ 600,000
    ₱ 486,000
    ₱ 180,000

    ₱ 1,626,000
    4,506,000
    80.67%

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