Harvold Company”s quality cost report is to be based on the following data:
|
Test and inspection of incoming materials |
$71,000 |
|
Supplies used in testing and inspection |
$51,000 |
|
Re-entering data because of keying errors |
$60,000 |
|
Statistical process control activities |
$82,000 |
|
Technical support provided to suppliers |
$91,000 |
|
Disposal of defective products |
$60,000 |
|
Lost sales due to poor quality |
$87,000 |
|
Net cost of scrap |
$85,000 |
|
Warranty repairs and replacements |
$70,000 |
Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs.