Blue Corporation, a manufacturing company, decided to develop a new line of merchandise. The project began in 2022. Blue had the following expenditures in connection with the project, all incurred in the U.S.: Salaries Materials Insurance Utilities Cost of inspection of materials for quality control Promotion expenses Advertising Equipment depreciation Cost of market survey Amount of the deduction 2022 2023 $500,000 $600,000 90,000 70,000 8,000 6,000 7,000 11,000 0 Amount of the deduction 15,000 8,000 The new product will be introduced for sale beginning in April 2024. If an amount is zero, enter "0". Calculate the monthly expense to the nearest dollar and use in subsequent computations a. Determine Blue Corporation's research and experimental expenditures for 2022 and 2023. 2022 2023 11,000 8,000 6,000 18,000 20,000 14,000 0 519,000 2022 b. Determine Blue Corporation's deduction for research and experimental expenditures for 2022 and 2023. 2023 703,000

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required…