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.
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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Question
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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