Beta Corporation Date: 30 June 2023Details:Raw materials inventory (fiber):Cost: £30,000Replacement cost: £28,000Finished goods inventory:ProductLambdaMuDirect costs£65,000£55,000Proportion of...
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Accounting
Beta Corporation
Date: 30 June 2023
Details:
- Raw materials inventory (fiber):
- Cost: £30,000
- Replacement cost: £28,000
- Finished goods inventory:
Product | Lambda | Mu |
Direct costs | £65,000 | £55,000 |
Proportion of fixed overhead | £18,000 | £16,000 |
Proportion of selling costs | £5,000 | £4,500 |
Net realizable value | £105,000 | £85,000 |
- Office machinery:
Acquired on 1 July 2017 for £330,000, depreciated over 9 years using the reducing balance method. - Freehold property:
Acquired 20 years ago for £2,900,000, land value estimated at £700,000. Buildings are depreciated over 60 years. - Research and development:
- Research costs: £850,000
- Development costs: £1,550,000, benefiting over 6 years.
Required:
Discuss the accounting treatment for these items in Beta Corporation's financial statements for the period ending 30 June 2023.
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