Epsilon Ltd Date: 31 March 2023Details:Raw materials inventory (textiles):Cost: £50,000Replacement cost: £55,000Finished goods inventory:ProductMuNuDirect costs£90,000£60,000Proportion of...
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Accounting
Epsilon Ltd
Date: 31 March 2023
Details:
- Raw materials inventory (textiles):
- Cost: £50,000
- Replacement cost: £55,000
- Finished goods inventory:
Product | Mu | Nu |
Direct costs | £90,000 | £60,000 |
Proportion of fixed overhead | £18,000 | £15,000 |
Proportion of selling costs | £5,000 | £4,000 |
Net realizable value | £130,000 | £80,000 |
- Office equipment:
Acquired on 1 April 2021 for £100,000, depreciated over 5 years using the straight-line method. - Freehold property:
Acquired 10 years ago for £900,000, land value estimated at £250,000. Buildings are depreciated over 50 years. - Research and development:
- Research costs: £15,000
- Development costs: £20,000, benefiting over 7 years.
Required:
Evaluate how each of these items should be recorded in Epsilon Ltd's financial statements for the year ending 31 March 2023.
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