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.

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.

Cost of equipment acquired that will have alternative    uses in future R&D projects over the next 5 years    (uses straight-line depreciation) $356,300 Materials consumed in R&D projects 59,220 Consulting fees paid to outsiders for R&D projects 117,600 Personnel costs of persons involved in R&D projects 139,200 Indirect costs reasonably allocable to R&D projects 45,540 Materials purchased for future R&D projects 36,410

Explanation / Answer

EXpense = Materials consumed in R&D projects + Consulting fees paid to outsiders for R&D projects +

Materials purchased for future R&D projects

=   59220 + 117600 +139200 +45540+36410

    = $ 397,970

Personnel costs of persons involved in R&D projects + Indirect costs reasonably allocable to R&D projects +

Materials purchased for future R&D projects

=   59220 + 117600 +139200 +45540+36410

    = $ 397,970

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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