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Harvie Company's Quality Cost Report Is to Be Based on the Following

Question 195

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Harvie Company's quality cost report is to be based on the following data:
 Lost sales due to poor quality $50,000 Quality engineering $66,000 Test and inspection of incoming materials $88,000 Re-entering data because of keying errors $36,000 Net cost of scrap $46,000 Tets and inspection of in-process goods $62,000 Warranty repair’s and replacements $32,000 Net cost of spoilage $89,000 Technical support provided to suppliers $70,000\begin{array}{|l|l|}\hline \text { Lost sales due to poor quality } & \$ 50,000 \\\hline \text { Quality engineering } & \$ 66,000 \\\hline \text { Test and inspection of incoming materials } & \$ 88,000 \\\hline \text { Re-entering data because of keying errors } & \$ 36,000 \\\hline \text { Net cost of scrap } & \$ 46,000 \\\hline \text { Tets and inspection of in-process goods } & \$ 62,000 \\\hline \text { Warranty repair's and replacements } & \$ 32,000 \\\hline \text { Net cost of spoilage } & \$ 89,000 \\\hline \text { Technical support provided to suppliers } & \$ 70,000 \\\hline\end{array} 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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