Heracross Inc quality cost report is based on the following data: Test and inspection of in-process goods  ₱  38,000 Quality training 56,000 Product recalls      10,000 Net cost of scrap  98,000 Cost of handling complaints

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Heracross Inc quality cost report is based on the following data:

Test and inspection of in-process goods 

₱  38,000

Quality training

56,000

Product recalls 

    10,000

Net cost of scrap 

98,000

Cost of handling complaints 

5,000

Final product testing and inspection 

89,000

Returns arising from quality problems 

25,000

Statistical process control activities 

83,000

Liability arising from defective products 

21,000

Downtime caused by quality problems 

78,000

Quality data gathering, analysis, and reporting 

90,000

Technical support provided to suppliers  

50,000

Disposal of defective products  

76,000

Lost sales due to poor quality 

11,000

₱______________  would be the Total External Failure Cost appearing on the quality cost report.

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