### Cost data incurred in processing lot quality cost data

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Q1) D.B. Smith Company recycles computers. It buys them and salvages parts and materials from the obsolete systems. It considers that it had done a "quality" job if it can salvage 60 percent of the "book value" of equipment that it buys. The book value of a particular lot that it bought was \$1,700,000. What conclusions can be drawn from the cost data incurred in processing the lot, as found in the Excel workbook Quality Cost Data? Customer returns are simply scrapped and replaced. Be sure and specify your assumptions about categories of quality costs.

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