costs of personnel 500,000 Outside consulting fees 150,000 Indirect costs appropriately allocated 250,000 The total research and development costs charge in Sponge's 2021 statement of profit or loss should be: 850,000 1,085,000 1,235,000
costs of personnel 500,000 Outside consulting fees 150,000 Indirect costs appropriately allocated 250,000 The total research and development costs charge in Sponge's 2021 statement of profit or loss should be: 850,000 1,085,000 1,235,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
22.Sponge Co. incurred research and development costs in 2021 as follows:
Equipment acquired for use in various research
and development projects 975,000
Depreciation on the above equipment 135,000
Materials used 200,000
Compensation costs of personnel 500,000
Outside consulting fees 150,000
Indirect costs appropriately allocated 250,000
The total research and development costs charge in Sponge's 2021 statement of profit or loss should be:
Equipment acquired for use in various research
and development projects 975,000
Materials used 200,000
Compensation costs of personnel 500,000
Outside consulting fees 150,000
Indirect costs appropriately allocated 250,000
The total research and development costs charge in Sponge's 2021 statement of profit or loss should be:
850,000
1,085,000
1,235,000
1,825,000
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