XYZ Company made expenditures for the following: Costs in activities aimed at obtaining new knowledge P 10,000 Cost of developing and producing a prototype model 3,000 Cost of testing the prototype model for safety and environmental friendliness 30,000 Cost of revising designs for flaws in the prototype model 10,000 Salaries of employees, consultants and technicians involved in R and D 20,000 Marketing research to study consumer tastes 5,000 Advertising to establish recognition of the newly developed product 30,000 Cost of conference for the introduction of the newly developed product including fee of a model hired as endorser How much is recognized as research and development expense? _____
XYZ Company made expenditures for the following: Costs in activities aimed at obtaining new knowledge P 10,000 Cost of developing and producing a prototype model 3,000 Cost of testing the prototype model for safety and environmental friendliness 30,000 Cost of revising designs for flaws in the prototype model 10,000 Salaries of employees, consultants and technicians involved in R and D 20,000 Marketing research to study consumer tastes 5,000 Advertising to establish recognition of the newly developed product 30,000 Cost of conference for the introduction of the newly developed product including fee of a model hired as endorser How much is recognized as research and development expense? _____
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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XYZ Company made expenditures for the following:
- Costs in activities aimed at obtaining new knowledge P 10,000
- Cost of developing and producing a prototype model 3,000
- Cost of testing the prototype model for safety and environmental friendliness 30,000
- Cost of revising designs for flaws in the prototype model 10,000
- Salaries of employees, consultants and technicians involved in R and D 20,000
Marketing research to study consumer tastes 5,000- Advertising to establish recognition of the newly developed product 30,000
- Cost of conference for the introduction of the newly developed product including fee of a model hired as endorser
How much is recognized as research and development expense? _____________
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