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Managerial Accounting

Eakle Company's quality cost report is to be based on the following data:

Supervision of testing and inspection activities 29,000
Warranty repairs and replacements 11,000
Net cost of scrap 55,000
Test and inspection of incoming materials 25,000
Technical support provided to suppliers 67,000
Disposal of defective products 96,000
Quality data gathering, analysis, and reporting 43,000
Liability arising from defective products 72,000
Depreciation of test equipment 21,000

Reference: 2-10

What would be the total internal failure cost appearing on the quality cost report?


Solution Preview

Hi there,

Your answer is 72,000 + 96,000 = 168,000. The only ...