Beta Company had total sales of $2,900,000 for the fiscal year ending on December 31, 20X1. The company's costs of quality are as follows: Prototype inspection $132,000 Quality circles 75,000 Design changes 45,000 Product liability 35,000 Field testing 60,000 Calculate Beta's prevention cost for the year.
a.$207,000
b.$120,000
c.$80,000
d.$140,000
The prevention cost for Beta Company can be calculated by adding up the costs of prototype inspection, quality circles, design changes, and field testing.
Total prevention cost = Prototype inspection + Quality circles + Design changes + Field testing
= $132,000 + $75,000 + $45,000 + $60,000
= $312,000
Therefore, Beta's prevention cost for the year is $312,000.
The correct answer is not provided in the options given.
To calculate Beta Company's prevention cost for the year, we need to add up the costs of prototype inspection, quality circles, design changes, and product liability.
Prototype inspection: $132,000
Quality circles: $75,000
Design changes: $45,000
Product liability: $35,000
Adding these costs together:
$132,000 + $75,000 + $45,000 + $35,000 = $287,000.
Therefore, Beta Company's prevention cost for the year is $287,000.
None of the given options match this answer, so none of the options provided is correct.