E 12-9 Research and Development Cost In 2019, Lalli Corporation incurred R&D costs as follow: Materials used from inventory 100,000 Personnel in R&D lab 100,000 Allocation of the cost of utilities and maintenance costs of the R&D facility 50,000 These costs relate to a product that will be marked in 2020. The company estimates tht these costs will be recouped by December 31, 2020. Required: 1. What is the amount of R&D cost expensed in 2019? 2. Would your answer change if the materials were purchased and not used or if the utilities and maintence costs were related to the corporate offices?
E 12-9 Research and Development Cost
In 2019, Lalli Corporation incurred R&D costs as follow:
Materials used from inventory 100,000
Personnel in R&D lab 100,000
Allocation of the cost of utilities and maintenance
costs of the R&D facility 50,000
These costs relate to a product that will be marked in 2020. The company estimates tht these costs will be recouped by December 31, 2020.
Required:
1. What is the amount of R&D cost expensed in 2019?
2. Would your answer change if the materials were purchased and not used or if the utilities and maintence costs were related to the corporate offices?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
