Mu Co. Date: 31 August 2023Details:Raw material inventory (aluminium):Cost: £50,000Replacement cost: £48,000Finished goods inventory:ProductPsiOmegaDirect costs£75,000£65,000Proportion of...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Mu Co.
Date: 31 August 2023
Details:
- Raw material inventory (aluminium):
- Cost: £50,000
- Replacement cost: £48,000
- Finished goods inventory:
Product | Psi | Omega |
Direct costs | £75,000 | £65,000 |
Proportion of fixed overhead | £20,000 | £18,000 |
Proportion of selling costs | £5,000 | £4,000 |
Net realizable value | £110,000 | £85,000 |
- Equipment:
Acquired on 1 September 2020 for £450,000, depreciated over 10 years using the straight-line method. - Buildings:
Acquired 21 years ago for £1,500,000, land value estimated at £300,000. Buildings are depreciated over 55 years. - Research and development:
- Research costs: £55,000
- Development costs: £65,000, benefiting over 3 years.
Required:
Calculate the depreciation expenses and inventory valuations for Mu Co. as of 31 August 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.