What would be the total internal failure cost appearing on the quality cost report?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Please do not give solution in image format thanku 

A Company's quality cost report is to be based on the following data:
Quality circles - $ 12,000
Product recalls - $ 24,000
Supplies used in testing and inspection - $ 87,000
Net cost of scrap - $ 59,000
Liability arising from defective products = $ 38,000
Re-entering data because of keying errors = $ 65,000
Debugging manufacturing software errors after installation - $ 19,000
Test and inspection of incoming materials = $ 65,000
Quality data gathering, analysis, and reporting $ 55,000
Net cost of spoilage = $5,000
What would be the total internal failure cost appearing on the quality cost report?
O $89,000
O $143,000
O $148,000
O $62,000
Transcribed Image Text:A Company's quality cost report is to be based on the following data: Quality circles - $ 12,000 Product recalls - $ 24,000 Supplies used in testing and inspection - $ 87,000 Net cost of scrap - $ 59,000 Liability arising from defective products = $ 38,000 Re-entering data because of keying errors = $ 65,000 Debugging manufacturing software errors after installation - $ 19,000 Test and inspection of incoming materials = $ 65,000 Quality data gathering, analysis, and reporting $ 55,000 Net cost of spoilage = $5,000 What would be the total internal failure cost appearing on the quality cost report? O $89,000 O $143,000 O $148,000 O $62,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Quality control
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education