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

question 126

Essay

Harui Company's quality cost report is to be based on the following data:
$\begin{array}{|l|r|}\hline \text { Test and inspection of in-process goods } & \$ 32,000 \\\hline \text { Net cost and spoilage } & \$ 45,000 \\\hline \text { Quality circles } & \$ 33,000 \\\hline \text { Downtime caused by quality problems } & \$ 28,000 \\\hline \text { Final product testing and inspection } & \$ 78,000 \\\hline \text { Rework labour and overhead } & \$ 48,000 \\\hline \text { Quality training } & \$ 93,000 \\\hline \text { Returns arising from quality problems } & \$ 92,000 \\\hline \text { Warranty repair's and replacements } & \$ 67,000 \\\hline\end{array}$
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.
b)If Harui's efforts to ensure quality conformance are working,how would you expect the Quality Cost Report next year to compare with this one?

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Definitions:

GDP Deflator

The GDP deflator is a measure of the level of prices of all new, domestically produced, final goods and services in an economy, acting as a gauge of inflation.

Real Per Capita GDP

The measure of a country's economic output that accounts for its number of people and adjusts for inflation, indicating the average economic well-being of its citizens.

Net Exports

The value obtained by subtracting a country's total value of imports from its total value of exports, representing a component of a country's GDP.

Real GDP

Real GDP measures the value of all final goods and services produced within a country's borders in a given time period, adjusted for inflation.