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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
(Accounting for R&D Costs) 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) Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â $280,000
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 More on its current year income statement. Assume equipment is purchased at the beginning of the year.
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