The manager at East Coast Manufacturing organizes costs to prepare the Costs of Quality report. The manger compiled the following data: Employee training $156,000 $205,000 Warranty costs $251,000 $170,000 Rework Product testing Cost of rejected units $30,000 $25,000 $760,000 $100,000 Sales return processing costs Lost profits from lost sales Inspection at State I of Production Preventative maintenance $95,000 Improved equipment $145,000 What of the following cost is the total cost of quality the manager should use to report the costs in the internal failure cost category? O A. $251,000 O B. $602,000 C. $281,000 O D. $170,000 O E. $205,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The manager at East Coast Manufacturing organizes costs to prepare the Costs of Quality report. The manger compiled the following data:
Employee training
$156,000
$205,000
Warranty costs
$251,000
$170,000
Rework
Product testing
Cost of rejected units
$30,000
$25,000
$760,000
$100,000
Sales return processing costs
Lost profits from lost sales
Inspection at State I of Production
Preventative maintenance
$95,000
Improved equipment
$145,000
What of the following cost is the total cost of quality the manager should use to report the costs in the internal failure cost category?
O A. $251,000
O B. $602,000
C. $281,000
O D. $170,000
O E. $205,000
Transcribed Image Text:The manager at East Coast Manufacturing organizes costs to prepare the Costs of Quality report. The manger compiled the following data: Employee training $156,000 $205,000 Warranty costs $251,000 $170,000 Rework Product testing Cost of rejected units $30,000 $25,000 $760,000 $100,000 Sales return processing costs Lost profits from lost sales Inspection at State I of Production Preventative maintenance $95,000 Improved equipment $145,000 What of the following cost is the total cost of quality the manager should use to report the costs in the internal failure cost category? O A. $251,000 O B. $602,000 C. $281,000 O D. $170,000 O E. $205,000
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