BahrainCompany has the following information available for the year 2019:

Quality engineering ofproducts$20,000

Quality training ofemployees$2,000

Net cost ofscrap$30,000

Reworklabor$4,500

Warrantyrepairs$100,000

Productrecalls$200,000

Liability arising from defectiveproducts$1,000,000

Maintenance of testequipment$44,000

Quality improvementprojects$55,000

Setups fortesting$3,000

Supplies used intesting$5,500

Downtime caused bydefects$70,000

Disposal of defectiveproducts$80,000

Sales revenue$5,000,000

Required:

a. Prepare the quality cost report forBahrain Company.

b. As a manager ofBahrain Companywhat are your recommendations to control quality costs?

c. Explain the uses and limitations of a cost of quality report.