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CIS Company Has the Following Information Available Required:
Prepare the Quality Cost Report for CIS Company

Question 84

Essay

CIS Company has the following information available:
Quality engineering of products $20,000Technical support provided by CIS to suppliers $2,000Cost of field servicing $80,000Supervision of testing activities $30,000Net cost of spoilage $55,000Depreciation of testing equipment $4,500Plant utilities in inspection area $100,000Retesting of reworked products $200,000Lost sales arising from a reputation for poor quality products $1,000,000 Reinspection of reworked products$44,000Warranty replacements $3,000Returns and allowances given to customers due to quality issues $5,500Rework laborand overhead $70,000\begin{array} { l } \text {Quality engineering of products }&\$20,000 \\ \text {Technical support provided by CIS to suppliers }&\$2,000 \\ \text {Cost of field servicing }&\$80,000 \\ \text {Supervision of testing activities }&\$30,000 \\ \text {Net cost of spoilage }&\$55,000 \\ \text {Depreciation of testing equipment }&\$4,500 \\ \text {Plant utilities in inspection area }&\$100,000 \\ \text {Retesting of reworked products }&\$200,000 \\ \text {Lost sales arising from a reputation for poor quality products }&\$ 1,000,000\\ \text { Reinspection of reworked products}&\$ 44,000\\ \text {Warranty replacements }&\$3,000 \\ \text {Returns and allowances given to customers due to quality issues }&\$5,500 \\ \text {Rework laborand overhead }&\$70,000 \\\end{array}

Required:
Prepare the quality cost report for CIS Company.

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