Kang Company reported sales of $3,240,000 in 20x5. At the end of the calendar year, the following quality costs were reported:

Design review………………………………….$162,000

Recalls…………………………………………………54,000

Reinspection………………………………………27,000

Materials inspection………………………….21,600

Quality training………………………………….54,000

Process acceptance…………………………..27,000

Scrap…………………………………………………18,900

Lost sales………………………………………..108,000

Product inspection……………………………16,200

Returned goods……………………………….51,300

Required:

1. Prepare a quality cost report.

2. Prepare a graph (pie chart or bar graph) that shows the relative distribution of quality costs, and comment on the distribution.