Cost of self-developed product. Duck Vehicle Manufacturing Company incurs various costs in developing a new, amphibious vehicle for use in provision tours on land and water. Indicate the accounting treatment for each of the following expenditures.
(1) Salaries of Company Engineers to Design the New Vehicle ...... $325,000
(2) Cost of Prototype of New Vehicle Built By External Contractor ...... 278,200
(3) Cost of Supplies and salaries of Personnel to test Prototype ....... 68,900
(4) Fees Paid to Environment Protection Agency to Test Emissions
Of new Vehicle ........................... 15,200
(5) Legal Fees Incurred to Register and Establish a Patent on the new Vehicle . 12,500
(6) Cost of Castings, or Mold, for Metal Parts of New Vehicle ........ 46,000
(7) Cost of Local Permits to Commence Manufacturing the New Vehicle ..... 5,000
(8) Cost of Manufacturing the First Vehicle for a customer ......... 167,600