Gible Company’s quality cost report is based on the following data: Liability arising from defective products    ₱  83,000 Lost sales due to poor quality  89,000 Supervision of testing and inspection activities  11,000 Downtime due to defects   83,000 Reliability testing 56,000 Test and inspection of in-process goods  39,000 Rework labor and overhead  72,000 Disposal of defective products  76,000 Re-entering data because of keying errors  18,000 Test and inspection of incoming materials  60,000 ₱______________  would be the Total Internal Failure Cost appearing on the quality cost report.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter14: Quality And Environmental Cost Management
Section: Chapter Questions
Problem 25E: Which of the following quality costs is an internal failure cost? a. Inspection of reworked units b....
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Gible Company’s quality cost report is based on the following data:

Liability arising from defective products 

  ₱  83,000

Lost sales due to poor quality 

89,000

Supervision of testing and inspection activities 

11,000

Downtime due to defects  

83,000

Reliability testing

56,000

Test and inspection of in-process goods 

39,000

Rework labor and overhead 

72,000

Disposal of defective products 

76,000

Re-entering data because of keying errors 

18,000

Test and inspection of incoming materials 

60,000

₱______________  would be the Total Internal Failure Cost appearing on the quality cost report. 

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