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    Creating a Quality-Cost Report

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    Cerritos Circuitry manufactures electrical instruments for a variety of purposes. The following costs related to maintaining product quality were incurred in May.
    Training of quality-control inspectors $31,500
    Tests of instruments before sale 45,000
    Inspection of electrical components purchased from outside suppliers 18,000
    Costs of rework on faulty instruments 13,500
    Replacement of instruments already sold, which were still covered by warranty 24,750
    Costs of defective parts that cannot be salvaged 9,150

    Required: Prepare a quality-cost report similar to the report shown in Exhibit 12-8 .

    © BrainMass Inc. brainmass.com June 3, 2020, 11:58 pm ad1c9bdddf
    https://brainmass.com/business/accounting/creating-a-quality-cost-report-310596

    Solution Summary

    Cerritos Circuitry manufactures electrical instruments for a variety of purposes. The following costs related to maintaining product quality were incurred in May.
    Training of quality-control inspectors $31,500
    Tests of instruments before sale 45,000
    Inspection of electrical components purchased from outside suppliers 18,000
    Costs of rework on faulty instruments 13,500
    Replacement of instruments already sold, which were still covered by warranty 24,750
    Costs of defective parts that cannot be salvaged 9,150

    Required: Prepare a quality-cost report.

    $2.19

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