Problem 2 - 25 Points:

Jamaica Western Electronic Components Inc. manufactures multiple components for fossil fuel power generation units. The various costs of quality from their internal accounting systems generated the listing and amounts of various costs as seen in the starting table.

Identify the various cost types: Prevention, Appraisal, Internal and External Failure for each cost.

Once you have identified the costs, create a comparative report of the Cost of Quality contrasting 2019 vs. 2020 annual costs. Insert the detail costs into the appropriate cost categories.

Comment on your observations of the comparative data.

Description	2,019	% of Sales	2,020	% of Sales	Cost Type
Sales Revenues	$ 12,200,000		$ 15,200,000		Revenues
Testing Downtime	3,250		5,250
Product Liability Lawsuits	360,000		90,600
Process inspection	5,205		6,840
Reinspection of Rework	6,510		4,190
Materials Inspection	4,450		6,840
Scrap	8,600		4,500
Customer Complaints	7,690		2,270
Testing Equipment	16,540		15,910
Preventive Maintenance	22,800		23,800
Lost Sales	16,800		3,750
Field Testing	15,425		22,460
Quality Training	30,850		28,490
Warranty Repairs	31,870		16,740
Rework	45,700		12,680
Total Costs	$ 575,690	0.00%	$ 244,320	0.00%
Power Generation Sources Corporation
Costs of Quality - Percent of Sales Dollars
Description	2,019	% of Sales	2,020	% of Sales	Change
Sales Revenues	$12,200,000		$15,200,000		$3,000,000
Prevention Cost:
					$0
					$0
					$0
					$0
Total Prevention Cost	$0	0.00%	$0	0.00%	$0
Appraisal Cost:
					$0
					$0
					$0
Total Appraisal Cost	$0	0.00%	$0	0.00%	$0
Internal Failure Cost:
					$0
					$0
					$0
Total Internal Failure Cost	$0	0.00%	$0	0.00%	$0
External Failure Cost:
					$0
					$0
					$0
					$0
Total External Failure Cost	$0	0.00%	$0	0.00%	$0
Total Costs	$0	0.00%	$0	0.00%	$0