Nama : Faradiba Mauradi

NIM : 20/461123/EK/23079
Jurusan : Akuntansi

Weekly Assignment 8
E.15-4 During 2007 and 2008, Wilmington Company reported sales of $6,000,000 per year.
Wilmington listed the following quality costs for the past two years. Assume that all changes
in the quality costs are due to a quality-improvement program.

Required
1. Prepare a quality cost report for each year (2007 and 2008). What does this report tell
management?
Jawab :
2. Calculate the relative distribution of quality costs by category for each year. What message
does this communicate to management?
Jawab :

E.15-5 During 2007 and 2008, Norton Company reported sales of $18,000,000 per year.
Norton listed the following quality costs for the past two years. Assume that all changes in
the quality costs are due to a quality-improvement program.
Required
1. Prepare a quality cost report for each year (2007 and 2008).
Jawab :

2. How much were the additional resources invested in prevention and appraisal activities
(control costs) from one year to the next? What return did this investment generate? (What
reduction in failure costs was achieved?)
Jawab :

3. The management of Norton believes that it is possible to reduce quality costs to 2.5 percent
of sales. Assuming sales continue at the $18,000,000 level, calculate the additional profit
potential facing Norton. Is the expectation of improving quality and reducing quality costs to
2.5 percent of sales realistic? Explain
Jawab :

E.15-8 At the end of 2008, Emery Manufacturing began to focus on its quality costs. As a
first step, it identified the following costs in its accounting records as being quality related :
Sales (50,000 units @ $60) $3,000,000
Scrap 90,000
Rework 120,000
Training program 36,000
Consumer complaints 60,000
Warranty 120,000
Test labor 90,000
Inspection labor 75,000
Supplier evaluation 9,000
Required
1. Prepare a quality cost report by quality cost category.
Jawab :

2. Calculate the relative distribution percentages for each quality cost category. Comment on
the distribution.
Jawab :

3. Using the Taguchi quality loss function, an average loss per unit is computed at $5. What
are the hidden costs of external failure? How does this affect the relative distribution? What
effect will the hidden-cost information have on a qualityimprovement program?
Jawab :