Problem: Galati Company's quality cost report is to be based on the following data:
Lost sales due to poor quality $22,000
Test and inspection of incoming materials $91,000
Rework labour and overhead $55,000
Test and inspection of in-process goods $29,000
Product recalls $46,000
Quality data gathering, analysis, and reporting $10,000
Disposal of defective products $83,000
Maintenance of test equipment $57,000
Quality engineering $97,000
Required:
Prepare a quality cost report in good form with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs.