Epsilon Corporation Date: 31 December 2023Details:Raw material inventory (plastic):Cost: £45,000Replacement cost: £43,000Finished goods inventory:ProductGammaDeltaDirect costs£70,000£55,000Proportion of...
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Accounting
Epsilon Corporation
Date: 31 December 2023
Details:
- Raw material inventory (plastic):
- Cost: £45,000
- Replacement cost: £43,000
- Finished goods inventory:
Product | Gamma | Delta |
Direct costs | £70,000 | £55,000 |
Proportion of fixed overhead | £20,000 | £18,000 |
Proportion of selling costs | £6,000 | £5,500 |
Net realizable value | £110,000 | £85,000 |
- Furniture:
Acquired on 1 January 2019 for £300,000, depreciated over 8 years using the straight-line method. - Buildings:
Acquired 15 years ago for £2,700,000, land value estimated at £600,000. Buildings are depreciated over 60 years. - Research and development:
- Research costs: £400,000
- Development costs: £650,000, benefiting over 6 years.
Explain the financial statement impacts for Epsilon Corporation as of 31 December 2023, considering these details.
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