Question
Tuscany Co. has the following information available: Quality engineering of products $20,000 Quality training of employees $2,000 Net cost of scrap $30,000 Rework labor $4,500
Tuscany Co. has the following information available:
Quality engineering of products $20,000
Quality training of employees $2,000
Net cost of scrap $30,000
Rework labor $4,500
Warranty repairs $100,000
Product recalls $200,000
Liability arising from defective products $1,000,000
Maintenance of test equipment $44,000
Quality improvement projects $55,000
Setups for testing $3,000
Supplies used in testing $5,500
Downtime caused by defects $70,000
Disposal of defective products $80,000
Prepare the quality cost report for the Tuscany Co. by classifying above costs into four types of quality costs.
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