Gible Company’s quality cost report is based on the following data: Liability arising from defective products ₱ 83,000 Lost sales due to poor quality 89,000 Supervision of testing and inspection activities 11,000 Downtime due to defects 83,000 Reliability testing 56,000 Test and inspection of in-process goods 39,000 Rework labor and overhead 72,000 Disposal of defective products 76,000 Re-entering data because of keying errors 18,000 Test and inspection of incoming materials 60,000 ₱______________ would be the Total Internal Failure Cost appearing on the quality cost report.
Gible Company’s quality cost report is based on the following data: Liability arising from defective products ₱ 83,000 Lost sales due to poor quality 89,000 Supervision of testing and inspection activities 11,000 Downtime due to defects 83,000 Reliability testing 56,000 Test and inspection of in-process goods 39,000 Rework labor and overhead 72,000 Disposal of defective products 76,000 Re-entering data because of keying errors 18,000 Test and inspection of incoming materials 60,000 ₱______________ would be the Total Internal Failure Cost appearing on the quality cost report.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Gible Company’s quality cost report is based on the following data:
|
Liability arising from defective products |
₱ 83,000 |
|
Lost sales due to poor quality |
89,000 |
|
Supervision of testing and inspection activities |
11,000 |
|
Downtime due to defects |
83,000 |
|
Reliability testing |
56,000 |
|
Test and inspection of in-process goods |
39,000 |
|
Rework labor and |
72,000 |
|
Disposal of defective products |
76,000 |
|
Re-entering data because of keying errors |
18,000 |
|
Test and inspection of incoming materials |
60,000 |
₱______________ would be the Total Internal Failure Cost appearing on the quality cost report.
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