. During the current year, Dangerous company incurred the following costs: Research and development services performed by another entity for Luminous 300,000 Design, construction and testing of preproduction prototype And model 400,000 Testing in search for new product or process alternative 350,000 What total amount should be reported as research and development expense in the current year?

. During the current year, Dangerous company incurred the following costs: Research and development services performed by another entity for Luminous 300,000 Design, construction and testing of preproduction prototype And model 400,000 Testing in search for new product or process alternative 350,000 What total amount should be reported as research and development expense in the current year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

As a result of FASB Statement of Financial Accounting Standards No. 86, "Accounting for the Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed," most software production costs are likely to be a. expensed as R&D costsb. allocated to inventory and expensed to cost of goods sold when the software is soldc. capitalized and amortized over a 40-year periodd. capitalized and amortized over a relatively short period, such as five years
A company's research department incurred $1,000,000 in material, labor, and overhead costs to construct a prototype of a new product and $100,000 to test and modify the prototype. Which of the following statements correctly describes the accounting treatment of prototype costs incurred by the company? 1. Capitalize $1,100,000 and amortize it over the expected sales life of the new product 2. Capitalize $1,100,000 and amortize it over the life of the prototype. 3. Capitalize $1,000,000 and amortize it over the life of the prototype and expense $100,000 as incurred. 4. Expense $1,100,000 as incurred.
Q2: The costs occurred in March has been allocated to each cost center. The cost of machines is 3.950.000 TL and the accumulated depreciation of machines is 1.927.700 TL. The useful life of machine is 10 years and Declining Balance Method is chosen. The depreciation cost of machines will be allocated on the base of machine hours. The allocated cost of service cost centers will be re-distributed according to Step Ladder Method. First apportioned center will be chosen according to total cost. Infirmary and Cafeteria will be allocated on the base of number of workers, Generator on the base of kwh and Maintenance and Repair on the base of maintenance and repoir hour. The allocation keys of each item are as follows: Cost Production Departments Service Departments Centers/Costs Pasta Cutting Drying Maintenance Total Gristmill Generator Infirmary Cafeteria & Repair Press 17.000 Cost Direct Material 25.000 18.000 60.000 Direct Labor 36.000 27.000 17.000 80.000 Factory Overhead Indirect 3.000…
11.
Dorman company purchased a new machine for its production process. The following costs were incurred for the new machine. Training costs for workers who will operate the machine $15,000 Wages paid to workers who operate the machine during production 109,000 Ordinary repairs to the machine before the first production run 1,000 1 Cost of platform used to properly secure the machine 30,000 Costs of tests run which took place before the first production run 8,000 WHICH COSTS SHOULD BE ADDED TO THE COST OF MACHINE?
Candalibra Company incurred the following costs during the year ended December 31, 2018: Laboratory research aimed at discovery of new knowledge $300,000 Costs of testing prototype and design modifications (economic viability not achieved) 55,000 Quality control during commercial production, including routine testing of products 210,000 Construction of research facilities having an estimated useful life of 12 years but no alternative future use 440,000 What is the total amount to be classified and expensed as research and development in 2018 under U.S. GAAP? 79
1 account treatment opotiom: capitalized/ depreciated or expensed
Survivor Company incurred the following cost for the year-ended December 31, 2021: Depreciation of delivery equipment Depreciation of administrative equipment Depreciation of production equipment Direct materials Direct labor Indirect labor Utilities, admin department Utilities, sales department Rent, finished goods warehouse Rent, raw materials warehouse Determine the total conversion cost. P11,953 P19,145 P15,646 P20,140 P25,644 P20,899 P30,974 P21,650 P15,830 P21,897
35.During 2021, King Co. incurred the following costs: Testing in search for process alternatives 720,000 Costs of testing prototype and design modifications 500,000 Modification of the formulation of a process 1,220,000 Research and development services performed by Queen Corp. for King 650,000 In King's 2021 statement of profit or loss, research and development expense should be 1,220,000 1,870,000 2,590,000 3,090,000
The following was the expenditure on a contract for $600,000 Material $120,000Wages $164,000 Plant $ 20,000Overheads $8,600Cash received on account of the contract was $240,000 being 80% of the work certified. The Value of material in hand was $10,000. The plant has undergone 20% depreciation. Calculation the profit on this incomplete contract by preparing a contract account.