Prepare the quality cost report for CIS Company

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Reference no: EM132841607

Question - CIS Company has the following information available:

Quality engineering of products RM20,000

Technical support provided by CIS to suppliers RM2,000

Cost of field servicing RM80,000

Supervision of testing activities RM30,000

Net cost of spoilage RM55,000

Depreciation of testing equipment RM4,500

Plant utilities in inspection area RM100,000

Retesting of reworked products RM200,000

Lost sales arising from a reputation for poor quality RM1,000,000

Reinspection of reworked products RM44,000

Warranty replacements RM3,000

Returns given to customers due to quality issues RM5,500

Rework labor and overhead RM70,000

Required - Prepare the quality cost report for CIS Company.

Reference no: EM132841607

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