Galati Company's Quality Cost Report Is to Be Based on the Following

Essay

Galati Company's quality cost report is to be based on the following data:
$\begin{array}{|l|r|}\hline \text { Lost sales due to poor quality } & \$ 22,000 \\\hline \text { Test and inspection of incoming materials } & \$ 91,000 \\\hline \text { Rework labour and overhead } & \$ 55,000 \\\hline \text { Test and inspection of in-process goods } & \$ 29,000 \\\hline \text { Product recalls } & \$ 46,000 \\\hline \text { Quality data gathering, analysis, and reporting } & \$ 10,000 \\\hline \text { Disposal of defective products } & \$ 83,000 \\\hline \text { Maintenance of test equipment } & \$ 57,000 \\\hline \text { Quality engineering } & \$ 97,000 \\\hline\end{array}$ Required:
Prepare a quality cost report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.