5. In 2020, Lalli Corporation incurred R&D costs as follows: Materials and equipment P100,000 Personnel 100,000 Indirect costs 50,000 P250,000 These cost relate to a product that will be marketed in 2021. The Company estimates that these costs will be reoouped by December 31, 2024. Required What is the amount of R&D costs expense in 2020?

5. In 2020, Lalli Corporation incurred R&D costs as follows: Materials and equipment P100,000 Personnel 100,000 Indirect costs 50,000 P250,000 These cost relate to a product that will be marketed in 2021. The Company estimates that these costs will be reoouped by December 31, 2024. Required What is the amount of R&D costs expense in 2020?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 3MC

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

5. In 2020, Lalli Corporation incurred R&D costs as follows:
Materials and equipment
P100,000
Personnel
100,000
Indirect costs
50,000
P250,000
These cost relate to a product that will be marketed in 2021. The Company estimates that
these costs will be recouped by December 31, 2024.
Required
What is the amount of R&D costs expense in 2020?

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