You have been asked to comment on the accounting treatment for various transactions that you recorded or prepared for the financial statements by citing the appropriate section of the FASB ASC.Explain how the ASC applies to your decision for the following transactions and how you have recorded them.
1. The inventory at your company consists of computer software that the company has developed and is selling. You capitalized the cost of duplicating the software, the instruction manuals, and training material that are sold with the software.