MKD Company's quality cost report is to be based on the following data: Test and inspection of incoming materials Supplies used in testing and inspection Re-entering data because of keying errors Statistical process control activities Technical support provided to suppliers Disposal of defective products Lost sales due to poor quality 3,550,000 2,550,000 3,000,000 4,100,000 4,550,000 3,000,000 4,350,000 Net cost of crap 4,250,000 Warranty repairs and replacements 3,500,000 Required: Prepare a Quality Cost Report in good from with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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MKD Company's quality cost report is to be based on the following data:
3,550,000
Test and inspection of incoming materials
Supplies used in testing and inspection
2,550,000
Re-entering data because of keying errors
Statistical process control activities
Technical support provided to suppliers
3,000,000
4,100,000
4,550,000
Disposal of defective products
Lost sales due to poor quality
3,000,000
4,350,000
Net cost of crap
4,250,000
Warranty repairs and replacements
3,500,000
Required:
Prepare a Quality Cost Report in good from with separate sections for prevention costs, appraisal
costs, internal failure costs, and external failure costs
Transcribed Image Text:MKD Company's quality cost report is to be based on the following data: 3,550,000 Test and inspection of incoming materials Supplies used in testing and inspection 2,550,000 Re-entering data because of keying errors Statistical process control activities Technical support provided to suppliers 3,000,000 4,100,000 4,550,000 Disposal of defective products Lost sales due to poor quality 3,000,000 4,350,000 Net cost of crap 4,250,000 Warranty repairs and replacements 3,500,000 Required: Prepare a Quality Cost Report in good from with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs
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