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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.
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