Reference no: EM132747064

Thais Company's quality cost report is to be based on the following data:

Liability arising from defective products $65,000

Lost sales due to poor quality $61,000

Test and inspection of in-process goods $57,000

Quality circles $27,000

Net cost of spoilage $103,000

Debugging software errors $39,000

Rework labour and overhead$ 105,000

Final product testing and inspection $42,000

Statistical process control activities $71,000

Problem 1: What will be the total prevention cost appearing on the quality cost report?

Option 1: $84,000

Option 2: $92,000

Option 3: $98,000

Option 4: $113,000