Lambda Ltd Date: 30 November 2023Details:Raw materials inventory (cotton):Cost: £35,000Replacement cost: £33,000Finished goods inventory:ProductPhiChiDirect costs£60,000£40,000Proportion of...
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Accounting
Lambda Ltd
Date: 30 November 2023
Details:
- Raw materials inventory (cotton):
- Cost: £35,000
- Replacement cost: £33,000
- Finished goods inventory:
Product | Phi | Chi |
Direct costs | £60,000 | £40,000 |
Proportion of fixed overhead | £15,000 | £10,000 |
Proportion of selling costs | £3,500 | £3,000 |
Net realizable value | £85,000 | £55,000 |
- Machinery:
Acquired on 1 December 2019 for £350,000, depreciated over 12 years using the reducing balance method. - Freehold property:
Acquired 17 years ago for £2,200,000, land value estimated at £450,000. Buildings are depreciated over 50 years. - Research and development:
- Research costs: £50,000
- Development costs: £60,000, benefiting over 4 years.
Required:
Detail the impact of these items on the financial statements of Lambda Ltd as of 30 November 2023.
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