Classify costs along the value chain for a manufacturer (Learning Objectives 2 & 3) Suppose the cell phone manufacturer Samsung Electronics provides the following information for its costs last month (in hundreds of thousands):

Requirements
1. Use the following format to classify each cost according to its place in the value chain.

2. Compute the total costs for each value-chain category.
3. How much are the total inventoriable product costs?
4. How much are the total prime costs?
5. How much are the total conversion costs?

Transcribed Image Text:

Salaries of telephone salespeople Depreciation on plant and equipment..65 Rearrange production process S 5 Transmitters. $61 to accommodate new robo.. Exterior case for phone Salaries of scientists who developed new mode.. Delivery expense to customers via Canada Post... 2 10 Technical customer support hotline..3 7 1-800 (toll-free) line for customer orders1 6 Assembly-line workers' wages... 12 Production Design of Products Direct Direct Manufacturing Customer R&D or Processes Materials Labour Overhead Marketing Distribion Service