Manufacturing
Product Prototype Development (Expensing Phase)
Recording materials and labor used to create an initial prototype before mass production.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Research & Development Expense | Expense (+) | 3,000.00 | - |
| Raw Materials / Wages Payable | Mixed | - | 3,000.00 |
💡 Accountant's Note
Unless specific capitalization criteria are met, the cost of 'testing and trying' new designs is expensed immediately as R&D.
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