Kappa Ltd Date: 31 March 2024Details:Raw materials inventory (wood):Cost: £28,000Replacement cost: £30,000Finished goods inventory:ProductLambdaMuDirect costs£65,000£55,000Proportion of...
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Accounting
Kappa Ltd
Date: 31 March 2024
Details:
- Raw materials inventory (wood):
- Cost: £28,000
- Replacement cost: £30,000
- Finished goods inventory:
Product | Lambda | Mu |
Direct costs | £65,000 | £55,000 |
Proportion of fixed overhead | £18,000 | £15,000 |
Proportion of selling costs | £3,500 | £3,000 |
Net realizable value | £100,000 | £85,000 |
- Office machinery:
Acquired on 1 April 2017 for £250,000, depreciated over 8 years using the reducing balance method. - Freehold property:
Acquired 19 years ago for £2,600,000, land value estimated at £650,000. Buildings are depreciated over 60 years. - Research and development:
- Research costs: £210,000
- Development costs: £270,000, benefiting over 5 years.
Required:
Prepare the necessary adjustments to Kappa Ltd's financial statements for the period ending 31 March 2024.
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