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Q3. (12 marks) Galati Company's quality cost report is to be based on the following data: Lost sales due to poor quality Test and inspection

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Q3. (12 marks) Galati Company's quality cost report is to be based on the following data: Lost sales due to poor quality Test and inspection of incoming materials Rework labour and overhead Test and inspection of in-process goods Product recalls Quality data gathering, analysis, and reporting Disposal of defective products Maintenance of test equipment Quality engineering $22,000 S91.000 $55,000 $29.000 $46,000 $10,000 $83,000 $57,000 $97.000 Required: Prepare a quality cost report in good form with separate sections for prevention costs. appraisal costs, internal failure costs, and external failure costs. to try to keep each category straight think in terms of where the materials and products are in the production or sales cycle when these expenses are incurred

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