15. Mindanao, Ine, made the following expenditures relating to Product M: *Legal costs to file patent on Product M, P20,000, Production of the finished product would not have been undertaken without the patent. *Special equipment to be used for the development of Product M, P120,000. The equipment can be used only for Product M. Estimated useful life is four(4) years. *Labor and material costs incurred in producing a prototype model, P400,000. *Cost of testing the prototype, P160,000, What is the total amount of costs that will be expensed when incurred?

15. Mindanao, Ine, made the following expenditures relating to Product M: Legal costs to file patent on Product M, P20,000, Production of the finished product would not have been undertaken without the patent. Special equipment to be used for the development of Product M, P120,000. The equipment can be used only for Product M. Estimated useful life is four(4) years. Labor and material costs incurred in producing a prototype model, P400,000. Cost of testing the prototype, P160,000, What is the total amount of costs that will be expensed when incurred?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 12.2.2P: Differential analysis report for machine replacement proposal Catalina Tooling Company is...

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Differential analysis report for machine replacement proposal Catalina Tooling Company is considering replacing a machine that has been used in its factory for two years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows: Annual nonmanufacturing operating expenses and revenue are not expected to be affected by the purchase of the new machine. Instructions List other factors that should be considered before a final decision is reached.
. Squarepants company made the following expenditures relating to product Y.Legal costs to file a patent on Product Y. Production of the finishedProduct would not have been undertaken without the patent 75,000Special equipment to be used solely for the development of Product YThe equipment has no other use and has an estimated useful life of 4 yrs 450,000Labor and materials costs incurred in producing a prototype 1,500,000Cost of testing the prototype 600,000 What total amount should be expensed when incurred?
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