During the current year, Pitt Company incurred costs to develop and produce a routine, low-risk computer software product. 1,300,000 Completion of detailed program design Costs incurred for coding and testing to establish technological feasibility Other coding costs after establishment of technological feasibility 1,000,000 2,400,000
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- May I ask for help with this question? I got an answer of 9,600,000 (Rounded Up) Please check. N Co. incurred the following costs in self-generating computer software: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.West Coast Growers incurs the following costs during the year related to the creation of a new disease-resistant tomato plant.Salaries for R&D $ 540,000 Depreciation on R&D facilities and equipment 145,000 Utilities incurred for the R&D facilities 7,000 Patent filing and related legal costs 27,000 Payment to another company for part of the development work 13,000What amount should West Coast Growers report as research and development (R&D) expense in its income statement?
- Cozy Inc. incurred and paid the following costs during the year ended December 31, 2021: Laboratory research aimed at discovery of new knowledge $200,000 Costs of testing prototype and design modifications (economic viability not achieved) 45,000 Quality control during commercial production, including routine testing of products 270,000 Construction of research facilities having an estimated useful life of 6 years but no alternative future use 360,000 The journal entry for the total amount to be classified and expensed as research and development in 2021 is:Sandhill Communications contracted to set up a call center for the City of Phoenix. Under the terms of the contract, Sandhill Communications will design and set-up a call center with the following costs: Design of call center $18000 Computers, servers, telephone equipment $510000 Software $150000 Installation and testing of equipment $26000 Selling commission $46000 Annual service contract $80000 In addition, Sandhill Communications will maintain and service the equipment and software to ensure smooth operations of the call center for an annual fee of $160000. Ownership of equipment installed remains with the City of Phoenix. The contract costs that should be capitalized is $678000. $830000. $660000. $750000.Western Wholesale Foods incurs the following expenditures during the current fiscal year. How should Western account for each of these expenditures? 1. Salaries for the repair technicians, $156,000 2 Remodeling of the executive offices, $80,300 3 Annual maintenance costs related to its machinery, $77,300 4 Improvement of the production line resulting in an increase in productivity, $31,100 S. Addition of a sprinkler system to the manufacturing facility to reduce the risk of fire damage, $44.400
- At the beginning of the year, Cinnabar Company initiated an environmental cost reduction program. To help assess the impact of the environmental cost reduction improvement program, the following data were collected for the year: Operating costs $2,500,000 Designing products 2,500 Auditing environmental activities 6,000 Recycling products 22,000 Disposing of toxic waste 37,000 Testing for contamination 15,000 Cleaning up oil spills 41,500 Which of the following expresses the environmental costs incurred on prevention activity as a percentage of operating costs (rounded to two decimal places)? a. 0.98% b. 0.15% c. 2.46% d. 4.96%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?Required: Prepare General Journal entries to record the Expense to R& Development ; Capitalization of Equipment and Patent.
- During 2020, Pitt Corporation incurred costs to develop and produce a routine, low- risk computer software product as follows:Completion of detailed program design 130,000Costs incurred for coding & testing to establish technological feasibility 100,000 Other coding costs after establishment of technological feasibility 240,000Other testing costs after establishment of technological feasibility 200,000Cost of producing product masters for training materials 150,000Duplication of computer software and training materials from productmasters (1,000 units) 250,000Packaging…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? 79k ces A machine costing $215,600 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 494,000 units of product during its life, It actually produces the following units: 121,800 in Year 1, 122,600 in Year 2, 120,600 in Year 3, 139,000 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. Note: The machine cannot be depreciated below its estimated salvage value. Required: Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. Note: Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar. Complete this question by entering your answers in the tabs below. Double declining balance Compute depreciation for each year (and total depreciation of all years combined) for the machine…