Gagnon Company”s quality cost report is to be based on the following data:
|
Maintenance of test equipment |
$18,000 |
|
Test and inspection of incoming materials |
$73,000 |
|
Systems development |
$29,000 |
|
Product recalls |
$91,000 |
|
Quality training |
$25,000 |
|
Disposal of defective products |
$55,000 |
|
Supervision of testing and inspection activities |
$24,000 |
|
Warranty repairs and replacements |
$58,000 |
|
Net cost of scrap |
$23,000 |
Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs.