17-8

CVI Inc. had November sales totaling $4,200,000 and incurred the following quality-related costs:

Spoiled work-in-process inventory disposal	$	28,000
Downtime, due to quality problems		24,000
Field test of new computer		74,000
Support of a customer complaint department		26,000
Product liability insurance		18,000
Quality training		12,000
Re-inspection		13,000
Rework (labor and overhead)		8,000
New vendor verification and facilities inspection		25,000
Technical support provided to vendors		4,000
Equipment inspection		20,000
Test and inspection of purchased parts		32,000
Warranty repairs		22,000

Required:

1. Prepare a cost-of-quality (COQ) report for November, with appropriate classifications. For each of the four major categories in your report, present total category cost as a percentage of total COQ for the period and as a percentage of sales. (Round your percentage answers to 2 decimal places.)

Cost-of-Quality (COQ) Report $ Amount % of Total % of Sales Prevention costs: Subtotal Appraisal costs: Subtotal Internal failure costs: Subtotal External failure costs: Subtotal Total quality costs (COQ) Total sales ID