Showing cost classified into four categories of quality cost

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Reference no: EM132211550

Brown Company makes products sold directly to customers. The company updates its products through design reviews to stop non-conformances from occurring. In addition, the company is committed to continuous quality improvement. At the end of 2017, the following quality costs were reported: $ Design review 405,000 Recalls 135,000 Re-inspection 67,500 Materials inspection 54,000 Quality training 135,000 Process acceptance 67,500 Scrap 47,250 Lost sales 270,000 Product inspection 40,500 Returned goods 128,250 Required: Prepare a quality cost report, showing the costs classified into the four categories of quality costs. Comment on the distribution of the quality costs. What would you recommend to management?

Reference no: EM132211550

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