Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Q1) TQ Products is committed to its quality program. It works with all areas of company to establish sound quality programs within reasonable budget guidelines. For 20X5, it has budgeted $1,000,000 for prevention costs and $800,000 for appraisal costs. Internal failure has budget of $100 per failed item, where as external failure has a total budget of $600,000.

Product Testing has proposed to management change in 20X5 budget for new method of testing products. If management makes a decision to implement new method, $2 per unit of appraisal costs will be saved, up to a level of 200,000 tests. No extra savings are expected past 200,000 level. New method involves $110,000 in training costs and $60,000 in yearly testing supplies.

Traditionally, 3% of all completed items have to be reworked. External failure costs average $120 per failed unit. Company's average external failures are 1% of units sold. Company carries no ending inventories.

Required:

a. Determine the adjusted budget for appraisal costs, suppose new method is implemented and 800,000 units are tested during manufacturing process in 20X5?

b. How much do internal failure costs change, suppose 600,000 units are tested under new method and it decreases the amount of unacceptable units in manufacturing process by 40%?

c. What would be change in external failure budget, suppose external failures are decreased by 60% and same facts as in part (b)?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M918042

Have any Question? 


Related Questions in Accounting Basics

Accountingimagine that you are a consultant working on a

Accounting Imagine that you are a consultant working on a special project to help a company determine techniques that it can use in order to calculate the fair value of investments. From the e-activity, prepare a report ...

Presentation 2- separate presentations but use same

Presentation (2- Separate Presentations but use same Publicly Traded Company) ** Please use references as needed ** Create a 10- to 12-slide presentation. Choose a publicly traded company. Using the most recent SEC 10-k ...

Assignment lasa ipo presentation amp myaccountinglab

Assignment: LASA: IPO Presentation & MyAccountingLab Post-Tests This assignment will consist of two parts. Part I: IPO Presentation: You work for a medium sized privately held electronics firm which is considering transi ...

Question 1dollys best issued 200 shares of its 10 common

Question 1 Dolly's Best issued 200 shares of its $10 common stock in exchange for used packaging equipment with a fair market value of $2,400. The entry to record the acquisition of the equipment would include a A. debit ...

Accountingi for the month of january jims landscaping

Accounting I. For the month of January Jim's Landscaping Company has the following transactions: 1. Borrowed $5,000 from First National Bank on a note due in two years. 2. Received $12,500 cash from investors and issued ...

Learning outcomescode descriptiona1 in-depth and systematic

Learning outcomes Code Description A1 in-depth and systematic understanding of key investment concepts to facilitate strategic real estate investment decision-making A4 critical awareness and understanding of the evolvin ...

Project assignmentdo investors react to stock

Project Assignment Do Investors React to Stock Dividends? Financial accounting theory predicts that there should be no market reaction to a company's stock dividend. This is because the market value of the shares should ...

Bubbles hot tubsbubbles hot tubs are a business that

Bubbles Hot Tubs Bubbles Hot Tubs are a business that manufactures and sells hot tubs to the UK market. At present the business manufactures three different types of hot tubs: The selling prices for each of the hot tubs ...

In january 2013 mitzu co pays 2650000 for a tract of land

In January 2013, Mitzu Co. pays $2,650,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $823,50 ...

Accounting assignment1 the standard direct labor time for

Accounting Assignment 1. The standard direct labor time for producing one pair of original Crocs is 0.6 hours and the direct labor rate for producing one pair of original Crocs is $18.50 per hour. During February, 10,000 ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen