Question

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 inExhibit 8–6.


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  • CreatedApril 22, 2014
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