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

Question 148

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Harwood Company's quality cost report is to be based on the following data:

 Amortization of test equipment $94,000 Quality cireles $54,000 Product recalls $20,000 Test and inspection of incoming materials $82,000 Debugging software errors $11,000 Rework labour 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\begin{array}{ll}\text { Amortization of test equipment } & \$ 94,000 \\\text { Quality cireles } & \$ 54,000 \\\text { Product recalls } & \$ 20,000 \\\text { Test and inspection of incoming materials } & \$ 82,000 \\\text { Debugging software errors } & \$ 11,000 \\\text { Rework labour and overhead } & \$ 48,000 \\\text { Technical support provided to suppliers } & \$ 12,000 \\\text { Net cost of scrap } & \$ 29,000 \\\text { Lost sales due to poor quality } & \$ 74,000\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.

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