2007
Sales	$13,000,000
Rework	500,000
Scrap	400,000
Quality training	85,000
Product warranty	500,000
Material Inspection	75,000
Products Inspection	142,000

1. Categorise the costs as internal failure, external failure, appraisal costs and prevention costs.
2. Develop a quality cost report for 2007.
3. Provide a quick interpretation of the quality cost report for 2007.