Gagnet Company's quality cost report is to be based on the following data:
|
Liability arising from defective products
|
$82,000
|
|
Final product testing and inspection
|
$40,000
|
|
Returns arising from quality problems
|
$24,000
|
|
Technical support provided to suppliers
|
$52,000
|
|
Disposal of defective products
|
$98,000
|
|
Maintenance of test equipment
|
$53,000
|
|
Systems development
|
$67,000
|
|
Depreciation of test equipment
|
$11,000
|
|
Debugging software errors
|
$87,000
|
Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs.