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

Question 24

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Gabris Company's quality cost report is to be based on the following data:
Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.
 Liability arising from defective products.............. $83,000Lost sales due to poor quality .............................. $89,000 Supervision of testing and inspection activities.... $10,000 Statistical process control activities.................... $83,000 Quality training................................................. $65,000 Test and inspection of in-process goods............. 27,000 Rework labor and overhead............................... 79,000 Re-entering data because of keying errors..........$18,000Test and inspection of incoming materials.......... $70,000\begin{array}{llcc} \text { Liability arising from defective products.............. } &\$83,000\\ \text {Lost sales due to poor quality .............................. } &\$89,000\\ \text { Supervision of testing and inspection activities.... } &\$10,000\\ \text { Statistical process control activities.................... } &\$83,000\\ \text { Quality training................................................. } &\$65,000\\ \text { Test and inspection of in-process goods............. } &27,000\\ \text { Rework labor and overhead............................... } &79,000\\ \text { Re-entering data because of keying errors..........} &\$18,000\\ \text {Test and inspection of incoming materials.......... } &\$70,000\\\end{array}

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