GEM Company Has the Following Information Available Required:
Prepare the Quality Cost Report for the GEM Company

question 27

Essay

GEM Company has the following information available:
$\begin{array}{ll}\text { Quality engineering of products } & \$ 20,000 \\\text { Quality training of employees } & \$ 2,000 \\\text { Net cost of scrap } & \$ 30,000 \\\text { Rework labor } & \$ 4,500 \\\text { Warranty repairs } & \$ 100,000\\\text { Product recalls } & \$ 200,000 \\\text { Liability arising from defective products } & \$ 1,000,000 \\\text { Maintenance of test equipment } & \$ 44,000 \\\text { Quality improvement projects } & \$ 55,000\\\text { Setups for testing } & \$ 3,000 \\\text { Supplies used in testing } & \$ 5,500 \\\text { Downtime caused by defects } & \$ 70,000 \\\text { Disposal of defective products } & \$ 80,000\end{array}$
Required:
Prepare the quality cost report for the GEM Company.

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Definitions:

Fraud Detection

The process of identifying and preventing deceitful practices or dishonesty, especially in financial contexts.

Insufficient Funds

A situation where an account does not have enough money available to cover a transaction.

Overdraft

A situation where an individual withdraws more money from a bank account than what is available, resulting in a negative balance.

Dishonor

The refusal or inability to pay a financial obligation or honor a contractual agreement.