Reference no: EM132642785
Question - APOL Company incurred the following costs to develop and produce a routine, low-risk computer software product as follows:
Development of new product design P169,000
Costs incurred for coding and testing to establish technological feasibility 130,000
Other coding costs after establishment of technological feasibility 572,000
Cost of producing product masters for training materials 195,000
Duplication of computer software and training materials for commercial production 325,000
Cost of packaging the products for distribution 117,000
APOL Company determined the life of the software as 5 years. Also, based on its most realizable forecast, the software would bring total revenue of P1,500,000 over its useful life. Revenue for the current year amounted to be P350,000. Future revenues can be determined reliably. The revenue and consumption of the benefits from the computer are not highly correlated.
Required - Determine the capitalized software cost?
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Determine the capitalized software cost
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