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.
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