Ball Co. incurred research and development costs in 2004 as follows: Materials u

Question

Ball Co. incurred research and development costs in 2004 as follows: Materials used in research and development projects Equipment acquired that will have alternate future uses in future research and development projects Depreciation for 2004 on above equipment Personnel costs of persons involved in research and development projects Consulting fees paid to outsiders for research and development projects Indirect costs reasonably allocable to research and development projects $540T0p0 4,600.000 360,000 660,000 180.000_ 270.001) $6,610,000 The amount of research and development costs charged to Ball's 2004 income statement should be $1,560,000. $1,740,000. $1, 010,000. None of the above

Explanation / Answer

calculation of reserch and development cost =

materials+ depreciation cost +personal costs of persons involved in research and development projects + consulting fee paid to outsiders for research and development costs=$ 540,000+360,000+660,000+180,000=$ 1,740,000

so answer is b)

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