Page 18 - Ebook Financial Accounting 3
P. 18
Question 1.2
1. The following is the cost of research and development activities for Zarah Bhd.
RM
Materials 100,000
Salaries and wages 140,000
Provision of overhead 70,000
Depreciation on property used for 60,000
research and development
Administrative costs 35,000
Required:
Calculate costs for research and development activities
Question 1.3
Due to rapid technological advances, the management had decided that changes need to be
made to the expected useful life of a software, “Quukrie”. The software has been made
subjected to annual amortization of RM40,000 since it was required on 1 July 20217 at cost of
RM800,000. On December 2019, the management decided that the software would benefit the
company for only 10 more years.
Required:
Discuss the effect of the changes in the useful life of the software.
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