Thomas More Company incurred the following costs during the current year in conn

Question

Thomas More Company incurred the following costs during the current year in connection with its research and development activities. Cost of equipment acquired that will have alternative uses in future R&D projects over the next 5 years (uses straight-line depreciation) $377,100 Materials consumed in R&D projects 61,210 Consulting fees paid to outsiders for R&D projects 115,700 Personnel costs of persons involved in R&D projects 121,500 Indirect costs reasonably allocable to R&D projects 54,850 Materials purchased for future R&D projects 31,860 Compute the amount to be reported as research and development expense by More on its current year income statement. Assume equipment is purchased at the beginning of the year. Total to be expensed in 2014 for research and Development $

Explanation / Answer

Material 61210 consulting fees 115700 Personnel cost 121,500 Indirect cost 54,850 materia purchased for fututre- (to be expense when consumed) - Depreciation (377100/5) 75420 Total expense 428680

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.