During the current year, Bashful Company incurred the following costs to develop and produce a routine, low-risk computer software product: Completion of detailed program design or working model Cost incurred for coding and testing to establish technological feasibility Other coding costs after establishment of technological feasibility Other testing costs after establishment of technological feasibility Costs of producing product masters for training materials Duplication of computer software and training materials from product master Packaging product 1,300,000 1,000,000 2,400,000 2,000,000 1,500,000 2,500,000 900,000 What amount should be capitalized initially as software cost?

During the current year, Bashful Company incurred the following costs to develop and produce a routine, low-risk computer software product: Completion of detailed program design or working model Cost incurred for coding and testing to establish technological feasibility Other coding costs after establishment of technological feasibility Other testing costs after establishment of technological feasibility Costs of producing product masters for training materials Duplication of computer software and training materials from product master Packaging product 1,300,000 1,000,000 2,400,000 2,000,000 1,500,000 2,500,000 900,000 What amount should be capitalized initially as software cost?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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