Coopers manufacturing costing system uses a three-part classification of direct materials, direct manudacturing labor, and manufacturing crerhead costs. The following iterns (in malions) pertain to Sooper Corporation (Click the icon to view the tems.) (Cick the icon to view the partal schedule of cost of goods manutactured) Requirements 1. Calculate total prime costs and total conversion costs 2. Calculate total inventoriable costs and period costs 3. Design costs and RSD costs are not considered product costs for financial statement purposes When might some of these costs be regarded as product costs? Give an example. 4. Suppose that both the drect materials used and the depreciation on plamt and equipment are related to the manulacture of 2 malion units of product Desermine the unit cost for the direct materials assigned to those units and the unt cost for depreciation on plant and equipment. Assume that yearly depreciation is computed on a straight-lne basis. 5. Assume that the implied costbehavior patiems in requiement 4 pensi. That is, drect material coots beheve as a variable cost and depreciation on plant and equipmem behaves as a foed cos. Repeat the compulabons in requirement 4 , assuming that the costs are being predicted for the manufacture of 3 milion units of product Determine the ellect an total costs. 6. Assume that depreciation on the equpment (but not the plant) is computed based on the nimber of units produced because the equipmont deteriorates with unhts produced. The depreciabion rate on equprent is $400 per unit. Caiculate the depeeciation on equipment assuming (a) 2 millon units of product are produced and (B) 3 milion units of product are produced. hrtial schedule of cost of goods manufactured.) Reference Coopers manufacturing costing system uses a throe-part classificotion of drect materials, drect manutacturing labor, and manufacturing overhead costs. The following items (in millions) pertain to Cooper Corporason. (Cick the koon to view the ltems,) Cick the icon to view the partial schedule of cost of goods marufactured.) Read the reaurements Requirement 1. Calculain total prime cosis and total converson costs: Requirements 1. Calcfate total prime costs and total conversion costs. 2. Calculate total inventoriable costs and period costs. 3. 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. 4. 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. 5. 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. 6. 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. Data table Reference Coopers manufacturing costing system uses a three-part classification of direct materials, direct manudacturing labor, and manufacturing crerhead costs. The following iterns (in malions) pertain to Sooper Corporation (Click the icon to view the tems.) (Cick the icon to view the partal schedule of cost of goods manutactured) Requirements 1. Calculate total prime costs and total conversion costs 2. Calculate total inventoriable costs and period costs 3. Design costs and RSD costs are not considered product costs for financial statement purposes When might some of these costs be regarded as product costs? Give an example. 4. Suppose that both the drect materials used and the depreciation on plamt and equipment are related to the manulacture of 2 malion units of product Desermine the unit cost for the direct materials assigned to those units and the unt cost for depreciation on plant and equipment. Assume that yearly depreciation is computed on a straight-lne basis. 5. Assume that the implied costbehavior patiems in requiement 4 pensi. That is, drect material coots beheve as a variable cost and depreciation on plant and equipmem behaves as a foed cos. Repeat the compulabons in requirement 4 , assuming that the costs are being predicted for the manufacture of 3 milion units of product Determine the ellect an total costs. 6. Assume that depreciation on the equpment (but not the plant) is computed based on the nimber of units produced because the equipmont deteriorates with unhts produced. The depreciabion rate on equprent is $400 per unit. Caiculate the depeeciation on equipment assuming (a) 2 millon units of product are produced and (B) 3 milion units of product are produced. hrtial schedule of cost of goods manufactured.) Reference Coopers manufacturing costing system uses a throe-part classificotion of drect materials, drect manutacturing labor, and manufacturing overhead costs. The following items (in millions) pertain to Cooper Corporason. (Cick the koon to view the ltems,) Cick the icon to view the partial schedule of cost of goods marufactured.) Read the reaurements Requirement 1. Calculain total prime cosis and total converson costs: Requirements 1. Calcfate total prime costs and total conversion costs. 2. Calculate total inventoriable costs and period costs. 3. 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. 4. 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. 5. 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. 6. 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. Data table Reference