Circle K Toys, Incorporated manufactures toys and children's clothing and sells these products to retail outlets. The following costs were incurred in performing quality activities at Circle K during the year: What is the total of the internal failure costs for Circle K?

Question

Circle K Toys, Incorporated manufactures toys and children's clothing and sells these products to retail outlets. The following costs were incurred in performing quality activities at Circle K during the year:  What is the total of the internal failure costs for Circle K?

Quizplus · Accepted Answer

The internal failure costs include the costs of scrap, rework, and downtime. Adding up these costs in the table, we get a total of $38,000.

Circle K Toys, Incorporated Manufactures Toys and Children's Clothing and Sells