During 2020, BLACKPINK INC. incurred costs to develop and produce a routine, low-risk computer software product as follows: • Completion of detailed program design or working model- 1,000,000 • Cost incurred for coding and testing to establish technological feasibility- 200,000 • Other coding costs after the establishment of technological feasibility- 2,000,000 • Other testing costs after the establishment of technological feasibility- 1,500,000 • Costs of producing product masters for training materials- 2,500,000 • Duplication of computer software and training materials from product master- 3,000,000 • Production overhead- 1,000,000 • Packaging product- 500,000 • Administrative overhead- 750,000 • Promotional cost of
During 2020, BLACKPINK INC. incurred costs to develop and produce a routine, low-risk computer software product as follows:
• Completion of detailed program design or working model- 1,000,000
• Cost incurred for coding and testing to establish technological feasibility- 200,000
• Other coding costs after the establishment of technological feasibility- 2,000,000
• Other testing costs after the establishment of technological feasibility- 1,500,000
• Costs of producing product masters for training materials- 2,500,000
• Duplication of computer software and training materials from product master- 3,000,000
• Production overhead- 1,000,000
• Packaging product- 500,000
• Administrative overhead- 750,000
• Promotional cost of the finished software- 200,000
• Abnormal amount of wasted materials and labor costs- 250,000
In the December 31, 2020 balance sheet, what amount should be reported as inventory?
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