The following costs were incurred by Valley Fabrications Ltd to maintain the quality of its products during April

• Operating an X-ray machine to detect faulty welds, $5400

• Repairs to faulty products returned by customers, $6000.

• Cost of rewelding faulty joints discovered during processing, $38

• Cost of sending machine operators to a three-week quality training

• Cost of recalling faulty products, $10000.

• Legal fees related to product recall, $1800.

• Product inspection into finished goods warehouse, $3400.

• Cost to confirm a supplier's quality accreditation, $600.

• Cost of faulty goods that were scrapped, $8400.

Required:

1. Prepare a cost of quality report similar to the report shown in Exhibit 16.11.

2. Comment on the relative proportions of each of the four categories of quality costs.