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Harvold Company's quality cost report is to be based on the following data:
Test and inspection of incoming materials
$71,000
Supplies used in testing and inspection
$51,000
Re-entering data because of keying errors
$60,000
Statistical process control activities
$82,000
Technical support provided to suppliers
$91,000
Disposal of defective products
Lost sales due to poor quality
$87,000
Net cost of scrap
$85,000
Warranty repairs and replacements
$70,000
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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