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

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

$\begin{array}{ll}\text { Lost sales due to poor quality } & \$ 24,000 \\\text { Test and inspection of incoming materials } & \$ 94,000 \\\text { Rework labour and overhead } & \$ 55,000 \\\text { Test and inspection of in-process goods } & \$ 32,000 \\\text { Product recalls } & \$ 47,000 \\\text { Quality data gathering, analysis, and reporting } & \$ 15,000 \\\text { Disposal of defective products } & \$ 88,000 \\\text { Maintenance of test equipment } & \$ 58,000 \\\text { Quality engineering } & \$ 98,000\end{array}$

Required:

Prepare a quality cost report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Correct Answer:

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