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.