Chapter 20 Problem 20-33
1. Product costs which are associated wit inventory items are:
Duplication of computer software and training materials 2,500,000
Packaging product 900,000
Total inventory 3,400,000
2. The costs incurred from the time of technological feasibility to the time when
product costs are incurred should be capitalized as computer software cost.
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
Total costs to be capitalized 5,900,000
3. Completion of detail program design 1,300,000
Cost incurred for coding and testing to establish technological feasibility 1,000,000
Total costs charged as expense 2,300,000
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