Sol Company made the following expenditures relating to Product ABC: Legal costs to file a patent
Question:
Sol Company made the following expenditures relating to Product ABC:
• Legal costs to file a patent on Product ABC. Production of the finished product would not have been undertaken without the patent- P750,000
• Special equipment to be used solely for the development of Product ABC. The equipment has no other use and has an estimated useful life of four years- P3,000,000
• Labor and material costs incurred in producing a prototype model before the establishment of technological feasibility- P2,000,000
• Cost of testing the prototype before the establishment of technological feasibility - P1,500,000
• Advertising costs- P550,000
What is the total amount of costs that will be expensed when incurred?
Global Marketing management
ISBN: 978-0470505748
5th edition
Authors: Masaaki Kotabe, Kristiaan Helsen