Omicron Inc. Date: 31 July 2023Details:Raw material inventory (plastic):Cost: £30,000Replacement cost: £28,000Finished goods inventory:ProductAlphaBetaDirect costs£65,000£55,000Proportion of...
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Accounting
Omicron Inc.
Date: 31 July 2023
Details:
- Raw material inventory (plastic):
- Cost: £30,000
- Replacement cost: £28,000
- Finished goods inventory:
Product | Alpha | Beta |
Direct costs | £65,000 | £55,000 |
Proportion of fixed overhead | £18,000 | £16,000 |
Proportion of selling costs | £5,500 | £5,000 |
Net realizable value | £105,000 | £85,000 |
- Furniture:
Acquired on 1 August 2017 for £310,000, depreciated over 10 years using the straight-line method. - Buildings:
Acquired 14 years ago for £2,700,000, land value estimated at £650,000. Buildings are depreciated over 55 years. - Research and development:
- Research costs: £740,000
- Development costs: £1,330,000, benefiting over 6 years.
Required:
Analyze the financial statement impact of these items for Omicron Inc. as of 31 July 2023.
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