Cost of self developed product. Duck Vehicle Manufacturing Company incurs various costs in developing a new, amphibious vehicle for use in providing tours on land and water. Indicate the accounting treatment for each of the following expenditures.
|
(1) |
Salaries of Company Engineers to Design the New Vehicle |
$325,000 |
|
(2) |
Cost of Prototype of New Vehicle Built by External Contractor |
278,200 |
|
(3) |
Cost of Supplies and Salaries of Personnel to Test Prototype |
68,900 |
|
(4) |
Fees Paid to Environmental Protection Agency to Test Emissions of New Vehicle |
15,200 |
|
(5) |
Legal Fees Incurred to Register and Establish a Patent on the New Vehicle |
12,500 |
|
(6) |
Cost of Castings, or Molds, for Metal Parts of New Vehicle |
46,000 |
|
(7) |
Cost of Local Permits to Commence Manufacturing the New Vehicle |
5,000 |
|
(8) |
Cost of Manufacturing the First Vehicle for a Customer |
167,600 |