Ventura Company Cost of Quality Report For the Years ended December 31, 2018 and 2019 Allowances for defects Cost of Field Services Disposal of Defective Units Downtime Inspection Net Cost of Scrap Quality Improvement Projects Quality Training Reliability Testing Rework Labor Supervision of Inspection Supervision of Prevention Activities Systems Development Warranty Repairs Warranty Replacements Depreciation on Testing Equipment 2019 $ 130,000 600,000 340,000 100,000 600,000 900,000 320,000 210,000 580,000 430,000 120,000 70,000 2018 $600,000 1,320,000 500,000 170,000 560,000 750,000 210,000 130,000 420,000 810,000 80,000 40,000 400,000 400,000 870,000 200,000 270,000 900,000 2,300,000 200,000 $6,270,000 $9,260,000 Ventura has been spending a lot of efforts on containing the cost of Quality over the past year and they are excited about the total savings. They would like you to help them out with a report that will demonstrate why they are better off. Required: Prepare a cost of quality report with the costs broken down into the specific categories of Prevention Costs, Appraisal Costs, Internal Failure Costs, and External Failure Costs. Included in your analysis, include the totals for each category and the percentage each category is of the total. Cost of Quality Report For the Years ended December 31, 2018 and 2019 2019 Percent 2018 Percent Prevention Costs Appraisal Costs Internal Failure Costs External Failure Costs $6,270,000 $9,260,000