Reference no: EM133188099

Question - During the current year, Bashful Company incurred the following costs to develop and produce a routine, low-risk computer software product:

Completion of detailed program design or working model 1,300,000

Cost 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 master 2,500,000

Packaging product 900,000

Required - What amount should be capitalized initially as software cost?