Cooper's manufacturing costing system uses a three-part classification of direct materials, direct manufacturing lab X (Click the icon to view the items.) (Click the icon to view the partial schedule of cost of goods - Data table Read the requirements. Finished-goods inventory, December 31, 2020 13 Accounts payable, December 31, 2020 23 Direct ma Accounts receivable, January 1, 2020 55 Deprecia - X Work-in-process inventory, December 31, 2020 6 Reference Requiren Finished-goods inventory, January 1, 2020 47 erial co requireme Deterr Accounts receivable, December 31, 2020 35 Repeat th Partial Schedule of Cost of Goods Manufactured of 2 m Accounts payable, January 1, 2020 48 (in millions) Direct materials inventory, January 1, 2020 38 Direct ma Deprecia Direct materials used $ 123 For Year 2020 Direct manufacturing labor costs 46 Plant utilities $ 2 Determing 68 29 Total indirect manufacturing overhead costs Indirect manufacturing labor Total dire Manufacturing costs incurred during 2020 237 Depreciation-plant and equipment 7 356 Requiren Revenues Add: Beginning work-in-process inventory, Jan. 1, 2020 14 umber Calculate on unit Miscellaneous manufacturing overhead 18 Total manufacturing costs to account for 251 Begin by 91 Less: Ending work-in-process inventory, Dec. 31, 2020 6 Marketing, distribution, and customer-service costs Direct materials purchased 89 $ 245 on on Cost of goods manfactured Direct manufacturing labor 46 Calculate in milli Plant supplies used 9 W (a) 1 milli Property taxes on plant Print Done (b) 2 milli Print Done CalculatorCoopers manufacturing oosting system uses a three-part classication of direct materials, direct manufacturing labor, and manufacturing overhead costs. The following items (in millions) pertain to Cooper Corporation: a (Click the icon to view the items.) a (Click the icon to view the partial schedule of cost of goods manufactured) Read the muirements. Requirement 1. Calculate total prime costs and total conversion costs. Total prime costs million Total conversion costs million Requlrement 2. Calculate total inventoriable costs and period costs. Total inventoriable costs million Period costs million Requirement 3. Design costs and R&D costs are not considered product costs for nancial statement purposes. When might some of these costs be regarded as product costs? Give an example. 0 A. Preparing nancial statements for external reporting under Generally Accepted Accounting Principles (GAAP). Under GAAP, design costs and R&D costs can be assigned to inventories although internal management reports must exclude these nonmanufacturing costs. 0 B. Contracting with govemment agencies. For example. if the Air Force negotiated to contract with a company to build a new type of supersonic ghter plane, design costs and R&D costs may be included in the contract as product costs. O C. Contracting with government agencies. For example. if the Department of Energy negotiated a project with a contractor and the design costs and R&D costs are not closely related to delivering products under the contract. O D. None of the above. Design costs and R&D costs can never be regarded as product costs. Requirement 4. Suppose that both the direct materials used and the depreciation on plant and equipment are related to the manufacture of 1 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 yeariy depreciation is computed on a straight-line basis. Begin by determining the formula used to calculate the unit cost for direct materials. + = Unit cost Now calculate the unit cost for direct materials and the unit cost for depreciation on plant and equipment. Use the same logic that you used in determining the formula for direct materials unit cost, when you calculate the depreciation unit cost. (Enter unit cost in dollars. Round vour answers to the nearest cent.) Calculator (9 Time Remaining: 01:57:48 m Cooper's manufacturing costing system uses a threepart classication of direct materials, direct manufacturing labor, and manufacturing overhead costs. The following items (in millions) pertain to Cooper Corporation: a (Click the icon to view the items.) Read the uiremenb. a (Click the icon to view the partial schedule of cost of goods manufactured) Direct materials used unit cost Depreciation unit cost Requirement 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 xed cost. Repeat the computations in requirement 4, assuming that the costs are being predicted for the manufacture of 2 million units of product, Determine the effect on total costs. Repeat the computations in requirement 4, assuming that the costs are being predicted for the manufacture of 2 million units of product. (Enter unit cost in dollars. Round your answers to the nearest cent.) Direct materials used unit cost Depreciation unit cost Determine the effect on total costs. Total direct materials would V and total depreciation costs would ll. Requirement 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 $6.00 per unit. Calculate the depreciation on equipment assuming (a) 1 million units of product are produced and (b) 2 million units of product are produced. Begin by determining the formula used to calculate the depreciation on equipment. x Calculate the depreciation on equipment assuming: (Do not round intermediary calculations. Enter answers in millions rounded to two decimal places, $X.XX million.) (a) 1 million units of product are produced, the depreciation would be (h) 2 million units of product are produced. the depreciation would then be Calculator million. million. Depreciation on equipment (9 Time Remaining: 01:57:25 m Cooper's manufacturing costing system uses a three-part classication of direct materials, direct manufacturing labor, and manufacturing overhead costs. The following items (in millions) pertain to Cooper Corporation: a (Click the icon to view the items.) a (Click the icon to view the partial schedule of cost of goods manufactured.) Read the muirements. Requirements Reference Requirement 1. Calculate total prime m Calculate total prime costs and total conversion costs. Partial Schedule of Cost of Goods Manufactured Total prime costs mi . Calculate total inventoriable costs and period costs. (in millions) Total conversion costs mi . Design costs and R&D costs are not considered product costs for nancial Direct materials used statement purposes. When might some of these costs be regarded as Requirement 2. Calculate total invento product costs? Give an example. Direct manufacturing labor costs T ' l . t . bl ' Suppose that both the direct materials used and the depreciation on plant ' g . o a inven ona e cos 5 and equipment are related to the manufacture 0\" million units of product. Total '"d'red manufacturing overhead costs Period costs Determine the unit cost for the direct materials assigned to those units and Manufacturing costs incurred during 2020 the unit cost for depreciation on plant and equipment. Assume that yearly Requirement 3. Design costs and R&D depreciation is computed on a straight-line basis. : Add: Beginning work-in-process inventory, Jan. 1, 2020 Assume that the implied cost-behavior patterns in requirement 4 persist. That Total manufacturing costs to account for O A. Preparing nancial statements f is. direct material costs behave as a variable cost and depreciation on plant ' exclude these nonmanufacturini and equipment behaves as a xed 05t- Repeat the '30""P'Jta'j'1'r's "1 Less: Ending work-in-process inventory. Dec. 31, 2020 requirement 4, assuming that the costs are being predicted for the O 3- Contracting With government 39 manufacture of 2 million units of product. Determine the eftect on total costs. ' Cost of goods mantactured O c. Contracting with government ag . Assume that depreciation on the equipment (but not the plant) is computed . based on the number of units produced because the equipment deteriorates O 0- None 0' \"19 above. DeSIgn 005\" with units produced. The depreciation rate on equipment is $6.00 per unit. Calculate the depreciation on equipment assuming (a) 1 million units of Requirement-1. Suppose that b0"! the product are produced and (b) 2 million units of product are produced. ' unit cost for depreciation on plant and e Begin by determining the fonhula used Now calculate the unit cost for direct rn . ermining the formula for direct materials unit cost, when you calculate the depreciation unit cost. (Enter unit cost in dollars. Round vour a Calculator (9 Time Remaining: 01:55:54 m Coopers manufacturing costing system uses a three-part classication a (Click the icon to view the items.) 5 (Click the icon to Read the muirements. Requirement 1. Calculate total prime costs and total conversion costs. Tomi prime costs million Total conversion costs million Requirement 2. Calculate total inventoriable costs and period costs. Total inventoriable costs million Period costs million Requirement 3. Design costs and R&D costs are not considered produ O A. Preparing nancial statements for external reporting under Gen exclude these nonmanufactun'ng costs. O B. Contracting with government agencies. For example, if the Air F O C. Contracting with government agencies. For example, if the Dep O D. None of the above. Design costs and R&D costs can never be Requirement 4. Suppose that both the direct materials used and the d unit cost for depreciation on plant and equipment. Assume that yearly d Begin by determining the formula used to calculate the unit cost for dire Now calculate the unit cost for direct materials and the unit cost for dep (Enter unit cost in dollars. Round vour answers to the nearest cent.) Calculator For Specic Date Work-ln-process Inventory, January 1, 2020 Direct materials inventory, December 31, 2020 Finishedgoods inventory, December 31, 2020 Accounts payable, December 31, 2020 Accounts receivable, January 1, 2020 Work-in-process inventory, December 31, 2020 Finished-goods inventory, January 1, 2020 Accounts receivable, December 31, 2020 Accounts payable, January 1, 2020 Direct materials inventory, January 1, 2020 For Year 2020 Plant utilities Indirect manufacturing labor Depreciationplant and equipment Revenues Miscellaneous manufacturing overhead Marketing, distribution, and customer-service costs Direct materials purchased illions) pertain to Cooper Corporation: ive an example. 0 inventories although internal management reports must R&D costs may be included in the contract as product costs. related to delivering products under the contract. e unit cost for the direct materials assigned to those units and the erials unit cost, when you calculate the depreciation unit cost. 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