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Water Industries' quality control report for August contains the following items: Gathering, analysis, and reporting quality...

Water Industries' quality control report for August contains the following items:

Gathering, analysis, and reporting quality data $ 1,450
Inspecting raw materials received from vendors 2,450
Testing and inspecting finished products 3,450
Visiting customer sites to test product 4,450
Designing product to reduce production problems 5,450
Repairing and/or replacing products under warranty 6,450
Maintaining equipment used to gather production quality data 7,450
Cost (net) of materials wasted during production 8,450

What would be the total of the external failure costs on the August quality control report for Water Industries?

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Answer #1
External failure costs $                6,450
Workings:
External failure costs
Repairing or replacing product under warranty $                6,450
Total $                6,450
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