Kappa Inc. Date: 28 February 2024Details:Raw material inventory (rubber):Cost: £25,000Replacement cost: £27,000Finished goods inventory:ProductTauUpsilonDirect costs£65,000£55,000Proportion of...
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Accounting
Kappa Inc.
Date: 28 February 2024
Details:
- Raw material inventory (rubber):
- Cost: £25,000
- Replacement cost: £27,000
- Finished goods inventory:
Product | Tau | Upsilon |
Direct costs | £65,000 | £55,000 |
Proportion of fixed overhead | £13,000 | £12,000 |
Proportion of selling costs | £4,000 | £3,500 |
Net realizable value | £95,000 | £70,000 |
- Vehicles:
Acquired on 1 March 2020 for £300,000, depreciated over 7 years using the straight-line method with no residual value. - Buildings:
Acquired 22 years ago for £1,800,000, land value estimated at £400,000. Buildings are depreciated over 45 years. - Research and development:
- Research costs: £45,000
- Development costs: £55,000, benefiting over 5 years.
Required:
Prepare the necessary ledger entries for Kappa Inc. reflecting these transactions as of 28 February 2024.
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