Mulvey Corporation Manufactures Large Kitchen Appliances Required:
(A)Classify These Items into Costs of Prevention (P),appraisal (A),internal

Mulvey Corporation manufactures large kitchen appliances.The following represents financial information for two years: $$\begin{array} { | l | r | r | } \hline & \mathbf { 2 0 1 6 } & \mathbf { 2 0 1 7 } \\\hline \text { Sales } & \$ 7,840,000 & \$ 7,040,000 \\\hline \text { Costs: } & & \\\hline \text { Process Inspection } & 52,800 & 60,000 \\\hline \text { Scrap } & 57,600 & 60,200 \\\hline \text { Quality Training } & 610,000 & 440,000 \\\text { Warranty Repairs } & 140,000 & 150,000 \\\hline \text { Testing Equipment } & 230,000 & 230,000 \\\hline \text { Resolving Customer Complaints } & 89,000 & 108,400 \\\hline \text { Rework } & 544,000 & 390,000 \\\hline \text { Preventative Maintenance } & 440,000 & 304,000 \\\hline \text { Material Inspection } & 210,000 & 150,000 \\\hline \text { Field Testing } & 300,000 & 400,000 \\\hline \text { Total costs } &\underline{ \$ 2,673,400 }&\underline{ \$ 2,292,600 }\\\hline\end{array}$$
Required:
(a)Classify these items into costs of 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 2016 and 2017.(c)Prepare a cost of quality report for 2016.