The CEO of Yuppie Prepared Meals is concerned about the amount of ...

[urbanoutfitters]

The CEO of Yuppie Prepared Meals is concerned about the amount of resources currently spent on customer warranty claims. Each box of snacks is printed with the guarantee: "Satisfaction
guaranteed or your money back." Since the claims are so high, she would like to evaluate
what costs are being incurred to ensure the quality of the product. The following information
was collected from various departments within the company:

Warranty claims

$315,000

Cost of defective products found at the inspection point

70,000

Training factory personnel.

20,000

Recall of Batch #59374

130,000

Inspecting products when halfway through the production process

45,000

Cost of disposing of rejected products

9,000

Preventive maintenance on factory equipment

5,000

Production loss due to machine breakdowns

12,000

Inspection of raw materials

4,000

As the new cost accountant the CEO has requested that you complete the following Cost of Quality Report:

​	Costs Incurred	Total Costs of Quality	Percentage of Total Costs of Quality
Prevention Costs:	​	​	​
​	​	​	​
​	​	​	​
Total prevention costs	​	​	​
Appraisal Costs:	​	​	​
​	​	​	​
​	​	​	​
Total appraisal costs	​	​	​
Internal Failure Costs:	​	​	​
​	​	​	​
​	​	​	​
​	​	​	​
Total Internal Failure costs	​	​	​
External Failure Costs:	​	​	​
​	​	​	​
​	​	​	​
Total external failure costs	​	​	​
Total costs of quality	​	​	​

[Ashley I]

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[urbanoutfitters]

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