Mulvey Corporation Manufactures Large Kitchen Appliances Required:
(A) Classify These Cost Items as Prevention (P), Appraisal

Mulvey Corporation manufactures large kitchen appliances. The following represents financial information for two years:
$\begin{array}{lrr}&2020&2021\\\text {Sales}&\$7,840,000&\$7,040,000\\\text { Costs: }\\\text { Process Inspection } & 52,800& 60,000 \\\text { Scrap } & 57,600& 60,200 \\\text { Quality Training } & 610,000 & 440,000 \\\text { Warranty Repairs } & 140,000 & 150,000\\\text { Testing Equipment } & 230,000 & 230,000 \\\text { Resolving Customer Complaints } & 89,000& 108,400 \\\text { Rework } & 544,000 & 390,000 \\\text { Preventative Maintenance } & 440,000 & 304,000 \\\text { Material Inspection } & 210,000 & 150,000 \\\text { Field Testing } & 300,000& 400,000\\\text { Total costs}&\$ 2,673,400&\$ 2,292,600\end{array}$
Required:
(a) Classify these cost items as prevention (P), appraisal (A), internal failure (I) or external failure (E) activities.
(b) Calculate the ratio of prevention, appraisal, internal failure, and external failure costs to sales for 2020 and 2021.
(c) Prepare a cost of quality report for 2020.