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Problem 38-12 (AICPA Adapted) During the current year, Awesome Company incurred costs to develop and produce a routine, low-risk computer software product. Completion of detailed program design 1,300,000 Costs incurred for coding and testing to establish technological feasibility 1,000,000 Other coding costs after establishment of technological feasibility 2,400,000 Other testing costs after establishment of technological feasibility 2,000,000 Costs of producing product masters for training materials 1,500,000 Duplication of computer software and training materials from product masters (1,000 units) 2,500,000 Packaging product (500 units) 900,000 - l. In the year-end statement of financial position, what amount should be reported in inventory? a. 2,500,000 b. 3,400,000 c. 4,000,000 d. 4,900,000 2. What total amount of the costs incurred should be expensed immediately.? a. 8,200,000 b. 2,300,000 c. 6,700,000 d. 4,400,000 3. In the year-end statement of financial position, what amount should be capitalized as software cost? a. 5,400,000 b. 5,700,000 c. 5,900,000 d. 6,900,000