Harwood Company's quality cost report is to be based on the following data:

2021 2022

Depreciation of test equipment	$94,000	$95,000
Audits of the effectiveness of the quality system	$54,000	$51,000
Product recalls	$20,000	$30,000
Test and inspection of incoming materials	$82,000	$85,000
Re-entering data because of keying errors	$11,000	$16,000
Rework labour and overhead	$48,000	$54,000
Technical support provided to suppliers	$12,000	$10,000
Net cost of scrap	$29,000	$33,000
Lost sales due to poor quality	$74,000	$84,000

Sales grew from $950,000 in 2021 to $1,000,000 in 2022.

Required:

make a quality cost report in proper order and in good form with separate sections for each of the four types of quality costs with appropriate subtotals and an overall total for both years as well as a percentage of sales column. Carry percentage computations to one decimal place. (15 marks).

Quality Cost Report

	2022	%	2021	%
Sales	1,000,000		950,000
Prevention Costs:
Appraisal Costs:
Internal Failure costs:
External failure Costs:
Total