Calculate total prime costs and total conversion costs. Calculate totaifinventoriable costs and period costs. Design costs and R\&D costs are not considered product costs for financial statement purposes. When might some of these costs be regarded as product costs? Give an example. Suppose that both the direct materials used and the depreciation on plant and equipment are related to the manufacture of 2 million units of product. Determine the unit cost for the direct materials assigned to those units and the unit cost for depreciation on plant and equipment. Assume that yearly depreciation is computed on a straight-line basis. Assume that the implied cost-behavior patterns in requirement 4 persist. That is, direct material costs behave as a variable cost and depreciation on plant and equipment behaves as a fixed cost. Repeat the computations in requirement 4 , assuming that the costs are being predicted for the manufacture of 3 million units of product. Determine the effect on total costs. Assume that depreciation on the equipment (but not the plant) is computed based on the number of units produced because the equipment deteriorates with units produced. The depreciation rate on equipment is $4.00 per unit. Calculate the depreciation on equipment assuming (a) 2 million units of product are produced and (b) 3 million units of product are produced. For Specific Date Work-in-process inventory, January 1, 2020$14 Direct materials inventory, December 31, 20208 Finished-goods inventory, December 31,2020 Accounts payable, December 31, 2020 Accounts receivable, January 1, 2020 Work-in-process inventory, December 31, 20204 Finished-goods inventory, January 1,202050 Accounts receivable, December 31, 2020 Accounts payable, January 1, 2020 49 Direct materials inventory, January 1, 2020 36 For Year 2020 Plant utilities Indirect manufacturing labor 20 Depreciation-plant and equipment 6 Revenues Miscellaneous manufacturing overhead 351 Marketing, distribution, and customer-service costs 91 Direct materials purchased 84 Direct manufacturing labor 43 Plant supplies used Property taxes on plant 7 3 Partial Schedule of Cost of Goods Manufactured