Question: Cerritos Circuitry manufactures electrical instruments for a variety of purposes. The following costs related to maintaining product quality were incurred in May.
Training of quality control inspectors $31,500
Tests of instruments before sale $45,000
Inspection of electrical components purchased form outside suppliers $18,000
Costs of rework on faulty instruments $13,500
Replacement of instruments already sold, (still covered by warrantee) $24,750
Costs of defective parts that cannot be salvaged. $ 9,150
1. Prepare a quality cost report