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 .
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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.
Purchase this Solution
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