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.