Alpha Inc. Date: 31 October 2023Details:Raw material inventory (synthetics):Cost: £40,000Replacement cost: £38,000Finished goods inventory:ProductOmicronPiDirect costs£80,000£65,000Proportion of...
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Accounting
Alpha Inc.
Date: 31 October 2023
Details:
- Raw material inventory (synthetics):
- Cost: £40,000
- Replacement cost: £38,000
- Finished goods inventory:
Product | Omicron | Pi |
Direct costs | £80,000 | £65,000 |
Proportion of fixed overhead | £20,000 | £18,000 |
Proportion of selling costs | £6,000 | £5,500 |
Net realizable value | £125,000 | £100,000 |
- Furniture:
Acquired on 1 November 2017 for £300,000, depreciated over 9 years using the straight-line method. - Buildings:
Acquired 17 years ago for £2,900,000, land value estimated at £800,000. Buildings are depreciated over 55 years. - Research and development:
- Research costs: £360,000
- Development costs: £570,000, benefiting over 5 years.
Required:
Analyze the impact of these items on Alpha Inc.'s financial statements for the period ending 31 October 2023.
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