SP, 18 ???? 211-90 / Chapter 12 Exercise 12-17 Cullumber Company incurred the fo

Question

SP, 18 ???? 211-90 / Chapter 12 Exercise 12-17 Cullumber 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) Materials consumed in R&D; projects Consulting fees paid to outsiders for R&D; projects Personnel costs of persons involved in R&D; projects Indirect costs reasonably allocable to R&D; projects Materials purchased for future R&D; projects $281,000 55,200 112,000 125,500 45,200 32,200 Compute the amount to be reported as research and development expense by Cullumber on its current year income statement. Assume equipment is purchased at the beginning of the year Total to be expensed for research and Development Question Attempts: O of 3 used Copyright 92000-2018 by John Wlley&Sons;, Inc. or related companies. All rights reserved

Explanation / Answer

Materials consumed in R&D projects $55,200 Consulting fees paid to outsiders for R&D projects $112,000 Personnel costs of persons involved in R&D projects $125,500 Indirect costs reasonably allocable to R&D projects $45,200 Depreciation on equipment used in R&D projects($281,000 / 5) $56,200 Total amount to be reported $394,100

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