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59) Eagleson Company's quality cost report is to be based on the following data:
Net cost of scrap
$
75,000
Liability arising from defective products
$
32,000
Warranty repairs and replacements
$
80,000
Re-entering data because of keying errors
$
75,000
Supplies used in testing and inspection
$
18,000
Quality data gathering, analysis, and reporting
$
62,000
Final product testing and inspection
$
21,000
Test and inspection of in-process goods
$
44,000
Systems development
$
45,000
What would be the total internal failure cost appearing on the quality cost report?
A) $155,000
B) $150,000
C) $96,000
D) $107,000
60) Eagleson Company's quality cost report is to be based on the following data:
Net cost of scrap
$
75,000
Liability arising from defective products
$
32,000
Warranty repairs and replacements
$
80,000
Re-entering data because of keying errors
$
75,000
Supplies used in testing and inspection
$
18,000
Quality data gathering, analysis, and reporting
$
62,000
Final product testing and inspection
$
21,000
Test and inspection of in-process goods
$
44,000
Systems development
$
45,000
What would be the total external failure cost appearing on the quality cost report?
A) $262,000
B) $155,000
C) $112,000
D) $451,000
37
61) Rigoletto Company's quality cost report is to be based on the following data:
Lost sales due to poor quality
$
24,000
Test and inspection of incoming materials
$
94,000
Rework labor and overhead
$
55,000
Test and inspection of in-process goods
$
32,000
Product recalls
$
47,000
Quality data gathering, analysis, and reporting
$
15,000
Disposal of defective products
$
88,000
Maintenance of test equipment
$
58,000
Quality engineering
$
98,000
Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal
costs, internal failure costs, and external failure costs.
39
62) Galaviz Company's quality cost report is to be based on the following data:
Net cost of spoilage
$
32,000
Test and inspection of in-process goods
$
56,000
Supplies used in testing and inspection
$
88,000
Quality engineering
$
60,000
Downtime caused by quality problems
$
89,000
Systems development
$
63,000
Supervision of testing and inspection activities
$
31,000
Cost of field servicing and handling complaints
$
39,000
Lost sales due to poor quality
$
62,000
Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal
costs, internal failure costs, and external failure costs.
41
63) Gadsen Company's quality cost report is to be based on the following data:
Maintenance of test equipment
$
38,000
Quality training
$
40,000
Product recalls
$
89,000
Quality circles
$
29,000
Rework labor and overhead
$
34,000
Liability arising from defective products
$
16,000
Supervision of testing and inspection activities
$
50,000
Re-entering data because of keying errors
$
50,000
Supplies used in testing and inspection
$
36,000
Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal
costs, internal failure costs, and external failure costs.
43
64) Hartnett Company's quality cost report is to be based on the following data:
Depreciation of test equipment
$
80,000
Quality data gathering, analysis, and reporting
$
15,000
Warranty repairs and replacements
$
68,000
Net cost of scrap
$
93,000
Disposal of defective products
$
81,000
Debugging software errors
$
22,000
Statistical process control activities
$
21,000
Test and inspection of in-process goods
$
52,000
Product recalls
$
40,000
Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal
costs, internal failure costs, and external failure costs.
45
65) Harwood Company's quality cost report is to be based on the following data:
Depreciation of test equipment
$
94,000
Quality circles
$
54,000
Product recalls
$
20,000
Test and inspection of incoming materials
$
82,000
Debugging software errors
$
11,000
Rework labor and overhead
$
48,000
Technical support provided to suppliers
$
12,000
Net cost of scrap
$
29,000
Lost sales due to poor quality
$
74,000
Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal
costs, internal failure costs, and external failure costs.
47
66) Galben Company's quality cost report is to be based on the following data:
Quality data gathering, analysis, and reporting
$
38,000
Supervision of testing and inspection activities
$
45,000
Liability arising from defective products
$
30,000
Technical support provided to suppliers
$
39,000
Disposal of defective products
$
72,000
Depreciation of test equipment
$
55,000
Downtime caused by quality problems
$
96,000
Test and inspection of in-process goods
$
69,000
Cost of field servicing and handling complaints
$
52,000
Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal
costs, internal failure costs, and external failure costs.
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