Question

Wally Company makes dog beds. Last year Wally incurred the following costs related to quality control. What is Wally Company's cost of quality for appraisal? 1. Repairs for dog beds under warranty 2,332 2. Seamstress training 4,498 3. Wages of part-time inspector of products 745 4. Cost of replacements given to customers for defective dog beds 1,616 5. Product liability insurance 2,140 6. Inspection of sewing machines as part of routine maintenance 2,720 7. Inspection of fabric and thread for defects 8. Repairing defective dog beds prior to sale 2,265 487

Answer 1

First step would be to classify the costs to classification of quality control :

Particulars	Explanation
Repairs for dog beds under warranty	External Failure cost as the repairs is done post sales and under warranty
Seamstress training	Prevention cost as training is done to prevent any accidents
Wages of part-time inspector of products	Appraisal cost as inspection is done to appraise the quality of product
Cost of replacements given to customers for defective dog beds	External failure cost as it is related to defectives
Product liability insurance	External failure cost as is incurred for products sold
Inspection of sewing machines as part of routine maintenance	Appraisal cost as it is inspection in manufacturing process
Inspection of fabric and thread for defects	Appraisal cost as it is related to manufacturing process
Repairing defective dog beds prior to sale	Internal failure cost as repairs is incurred before products are sold

The cost related to appraisal cost are :

Particulars	Amount ($)
Wages of part-time inspector of products	745
Inspection of sewing machines as part of routine	2720
Inspection of fabric and thread for defects	487
Cost of quality for appraisal	$ 3,952

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