Gadsen Company's quality cost report is to be based on the following data: Maintenance of test equipment Quality training Product recalls Quality circles Rework labor and overhead Liability arising from defective products Supervision of testing and inspection activities Re-entering data because of keying errors Supplies used in testing and inspection Required: Complete the following Quality Cost Report. $ 41,000 $ 110,000 $ 74,000 $ 48,000 $ 65,000 $ 29,000 $ 102,000 $ 76,000 $ 116,000 Prevention costs Total prevention cost Appraisal costs Total appraisal cost Internal failure costs Total internal failure cost External failure costs Gadsen Company Quality Cost Report 0 0 0 Total external failure cost 0 Total quality cost $ 0

Schedule of Activity Costs Quality Control Activities Product testing Assessing vendor quality Recalls Rework Scrap disposal Product design Training machine operators Warranty work Process audits From the provided schedule of activity costs, determine the (a) prevention and (b) appraisal costs. a. Prevention costs $ Activity Cost $55,000 26,000 18,000 29,000 8,000 30,000 46,000 12,000 22,000 b. Appraisal costs $

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Kirkland Company's quality cost report is to be based on the following data: Downtime caused by quality problems $11,000Rework labour and overhead $32,000Quality circles $44,000Returns arising from quality problems $97,000Supervision of testing and inspection activities $18,000Test and inspection of in-process goods $90,000Systems development $28,000Amortization of test equipment $25,000Warranty repairs and replacements $59,000 Required:a) Prepare a quality cost report in good form with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs.

Schedule of Activity Costs Quality Control Activities Process audits Training of machine operators Processing returned products Scrap processing (disposal) Rework Preventative maintenance Product design Warranty work Finished goods inspection Activity Cost $51,900 29,900 19,900 25,700 8,600 31,600 41,000 6,600 22,500 From the provided schedule of activity costs, determine the internal failure costs. Oa. $101,800 Ob. $27,440 Oc. $34,300 Od. $60,800

Schedule of Activity Costs Quality Control Activities Product testing Assessing vendor quality Recalls Rework Scrap disposal Product design Training machine operators Warranty work Process audits From the provided schedule of activity costs, determine the (a) value-added and (b) non-value-added costs. 2 a. Value-added costs $ Activity Cost $55,000 26,000 18,000 29,000 8,000 30,000 46,000 12,000 22,000 b. Non-value-added costs $

Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $50,200 Training of machine operators 26,300 Processing returned products 17,900 Scrap processing (disposal) 24,800 Rework 8,800 Preventative maintenance 30,500 Product design 45,300 Warranty work 9,500 Finished goods inspection 22,900 From the provided schedule of activity costs, determine the internal failure costs. Oa. $26,880 Ob. $33,600 Oc. $106,300 Od. $61,000

Quality Control Activities Activity Cost Process audits $50,300     Training of machine operators 27,900     Processing returned products 16,700     Scrap processing (disposal) 25,700     Rework 8,400     Preventative maintenance 27,600     Product design 42,100     Warranty work 6,900     Finished goods inspection 22,500     From the provided schedule of activity costs, determine the prevention costs. a. $97,600 b. $114,300 c. $106,000 d. $55,500

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