Use the following to answer questions 7-8: Eagan Company's quality cost report is to be...
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Use the following to answer questions 7-8: Eagan Company's quality cost report is to be based on the following data: Quality training $75,000 Lost sales due to poor quality $94,000 Test and inspection of in-process goods $37,000 Test and inspection of incoming materials $65,000 Disposal of defective products $86,000 Quality data gathering, analysis, and reporting $92,000 Net cost of spoilage $27,000 Supervision of testing and inspection activities $10,000 Product recalls $38,000 7. What will be the total prevention cost appearing on the quality cost report? A) $102,000. B) $112,000. C) $130,000. D) $167.000 8. What will be the total internal failure cost appearing on the quality cost report? A) $ 64,000. B) $113,000 C) $121,000 D) $124.000
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