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Smithfield Inc. manufactures and sells computers. Smithfield's management team has begun an intensive program whereby...

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Accounting

Smithfield Inc. manufactures and sells computers. Smithfield's management team has begun an intensive program whereby more time and effort are to be focused on product quality than were focused on in the past. The following data has been compiled regarding expected quality costs in the upcoming year: Product quality audits $60,000; Quality training $50,000; Rework costs $80,000; Warranty claims $40,000; Inspection of incoming materials $25,000; Scrap costs $20,000; Statistical process control $35,000. What are Smithfield's total prevention costs?

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