Gamma Ltd Date: 30 September 2023Details:Raw materials inventory (plastic):Cost: £28,000Replacement cost: £32,000Finished goods inventory:ProductThetaSigmaDirect costs£60,000£35,000Proportion of...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Gamma Ltd
Date: 30 September 2023
Details:
- Raw materials inventory (plastic):
- Cost: £28,000
- Replacement cost: £32,000
- Finished goods inventory:
Product | Theta | Sigma |
Direct costs | £60,000 | £35,000 |
Proportion of fixed overhead | £12,000 | £10,000 |
Proportion of selling costs | £3,000 | £2,500 |
Net realizable value | £90,000 | £50,000 |
- Equipment:
Acquired on 1 October 2021 for £250,000, with a useful life of 8 years and a residual value of £5,000. Straight-line depreciation method is applied. - Freehold land and buildings:
Purchased 15 years ago for £1,000,000, land portion estimated at £150,000. Buildings are depreciated over 40 years. - R&D expenses:
- Research: £25,000
- Development: £35,000, benefiting for 6 years.
Required:
Explain the impact of these items on Gamma Ltd's financial statements for the period ending 30 September 2023.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.