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

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Essay

Rigoletto Company's quality cost report is to be based on the following data:
Lost sales due to poor quality. $24,000Test and inspection of incoming materials. $94,000Rework labor and overhead. $55,000Test and inspection of in-process goods $32,000Product recalls $47,000Quality data gathering, analysis, and reporting $15,000 Disposal of defective products. $88,000Maintenance of test equipment. $58,000Quality engineering $98,000\begin{array}{lr}\text {Lost sales due to poor quality. }&\$24,000\\\text {Test and inspection of incoming materials. }&\$94,000\\\text {Rework labor 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.


Definitions:

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