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

question 19

Essay

Galati Company's quality cost report is to be based on the following data:
$\begin{array}{|l|r|}\hline \text { Lost sales due to poor quality } & \$ 22,000 \\\hline \text { Test and inspection of incoming materials } & \$ 91,000 \\\hline \text { Rework labour and overhead } & \$ 55,000 \\\hline \text { Test and inspection of in-process goods } & \$ 29,000 \\\hline \text { Product recalls } & \$ 46,000 \\\hline \text { Quality data gathering, analysis, and reporting } & \$ 10,000 \\\hline \text { Disposal of defective products } & \$ 83,000 \\\hline \text { Maintenance of test equipment } & \$ 57,000 \\\hline \text { Quality engineering } & \$ 97,000 \\\hline\end{array}$ Required:
Prepare a quality cost report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

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Definitions:

On-screen Confirmation

A visual acknowledgement displayed on a digital screen indicating that an action or transaction has been successfully completed.

Void

Refers to a contract or legal agreement that is deemed unenforceable and having no legal effect.

Actual Authority

The express and implied powers that an agent has been legitimately granted by a principal in an agency relationship.

Exceed

To go beyond the limits or expectations of something.