Gadsen Company's quality cost report is to be based on the following data: Maintenance of test equipment Quality training Product recalls Quality circles Rework labor and overhead Liability arising from defective products Supervision of testing and inspection activities Re-entering data because of keying errors Supplies used in testing and inspection Required: Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs. Prevention costs Total prevention cost Appraisal costs Total appraisal cost Internal failure costs Total internal failure cost External failure costs $ 35,000 $ 104,000 $ 68,000 $ 42,000 $ 59,000 $ 23,000 $ 96,000 $70,000 $ 110,000 Gadsen Company Quality Cost Report
Gadsen Company's quality cost report is to be based on the following data: Maintenance of test equipment Quality training Product recalls Quality circles Rework labor and overhead Liability arising from defective products Supervision of testing and inspection activities Re-entering data because of keying errors Supplies used in testing and inspection Required: Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs. Prevention costs Total prevention cost Appraisal costs Total appraisal cost Internal failure costs Total internal failure cost External failure costs $ 35,000 $ 104,000 $ 68,000 $ 42,000 $ 59,000 $ 23,000 $ 96,000 $70,000 $ 110,000 Gadsen Company Quality Cost Report
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Gadsen Company's quality cost report is to be based on the following data:
Maintenance of test equipment
Quality training
Product recalls
Quality circles
Rework labor and overhead
Liability arising from defective products
Supervision of testing and inspection activities
Re-entering data because of keying errors
Supplies used in testing and inspection
Prevention costs
Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal costs, internal failure costs, and
external failure costs.
Total prevention cost
Appraisal costs
Total appraisal cost
Internal failure costs
Total internal failure cost
External failure costs
Gadsen Company
Quality Cost Report
$ 35,000
$ 104,000
$ 68,000
$ 42,000
0
$ 59,000
$ 23,000
$ 96,000
$ 70,000
$ 110,000
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