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Waterloo Company's quality cost report is to be based on the following data: Systems developments Depreciation of test equipment Audits of the effectiveness of the
Waterloo Company's quality cost report is to be based on the following data: Systems developments Depreciation of test equipment Audits of the effectiveness of the quality system Product recalls Test & insepection of incoming materials Re-entering data because of keying errors Rework labour & overhead Technical support provided to suppliers Net cost of scrap Lost sales due to poor qualitiy 2018 $90,000 $ 4,000 54,000 20,000 82,000 11,000 48,000 12,000 29,000 74,000 $ 2017 90,000 5,000 51,000 30,000 85,000 16,000 54,000 10,000 33,000 84,000 Sales grew from $900,000 in 2017 to $1,000,000 in 2018 Required: a) Prepare a Quality Cost Report in good form with separate sections for each of the four types of quality costs with appropriate subtotals & an overall total for both years as well as a percentage of sales column. Carry percent computations to one decimal place (7 marks)
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