Eade Company\'s quality cost report is to be based on the following data: Liabil

Question

Eade Company's quality cost report is to be based on the following data:   Liability arising from defective products $34,900      Lost sales due to poor quality $19,300      Test and inspection of in-process goods $12,300      Quality circles $70,100      Net cost of spoilage $62,200      Debugging software errors $65,300      Rework labor and overhead $24,200      Final product testing and inspection $42,600      Statistical process control activities $45,700    What would be the total internal failure cost appearing on the quality cost report? Eade Company's quality cost report is to be based on the following data:

Explanation / Answer

interna faliure caost on quality cost report will be :

liability of defective product 34900

lost sale due to quality issue 19300

reworm labour and overhead 24200

net cost of spoilage 62200

Total internal failure cost $140600

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