(Accounting for R&D Costs) Martinez Company incurred the following costs during 2012 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 |
$330,000 |
|
Materials consumed in R&D projects |
59,000 |
|
Consulting fees paid to outsiders for R&D projects |
100,000 |
|
Personnel costs of persons involved in R&D projects |
128,000 |
|
Indirect costs reasonably allocable to R&D projects |
50,000 |
|
Materials purchased for future R&D projects |
34,000 |
Instructions
Compute the amount to be reported as research and development expense by Martinez on its income statement for 2012. Assume equipment is purchased at the beginning of the year.