$\text { Eacker Company's quality cost report is to be based on the following data: }$

question 200

Multiple Choice

$\text { Eacker Company's quality cost report is to be based on the following data: }$
$\begin{array}{|l|r|}\hline \text { Quality engineering } & \$ 72,000 \\\hline \text { Net cost of spoilage } & \$ 70,000 \\\hline \text { Re-entering data because of keying errors } & \$ 88,000 \\\hline \text { Test and inspection of incoming materials } & \$ 68,000 \\\hline \text { Test and inspection of in-process goods } & \$ 97,000 \\\hline \text { Technical support provided to suppliers } & \$ 83,000 \\\hline \text { Maintenance of test equipment } & \$ 31,000 \\\hline \text { Product recalls } & \$ 73,000 \\\hline \text { Warranty repairs and replacements } & \$ 46,000 \\\hline\end{array}$
- What will be the total appraisal cost appearing on the quality cost report?

• A) $128,000.
• B) $165,000.
• C) $185,000.
• D) $196,000.

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Definitions:

Process Costing

An accounting methodology used for homogeneous products, allocating costs over the entire production process rather than per individual item.

Equivalent Unit

A concept used in process costing that converts partially completed units into a number of equivalent fully completed units.

Conversion

Conversion involves the process of transforming raw materials or inputs into finished products or outcomes in manufacturing and production contexts.

Weighted-Average Inventory Method

An inventory costing method that assigns a cost to inventory and cost of goods sold based on the average cost of all similar items in inventory.