Hi I am a Product Developer and my material costs are specific for making prototypes of consumer products in the attempt of Licensing to a manufacturer and also making small batches of samples (50 or so) that may or may not be sold. Sold products are for the testing by the end user and trying to obtain product feedback but they keep the product afterwards. Unsold products would be provided at no charge to manufacturers for review and consideration of Licensing opportunities. Where is the best place for separating material costs and do I report sales of these products to individuals? Is there a credit available for product provided without compensation?
