Pi Ltd Date: 31 December 2023Details:Raw materials inventory (plastic):Cost: £38,000Replacement cost: £36,000Finished goods inventory:ProductAlphaBetaDirect costs£70,000£55,000Proportion of...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Pi Ltd
Date: 31 December 2023
Details:
- Raw materials inventory (plastic):
- Cost: £38,000
- Replacement cost: £36,000
- Finished goods inventory:
Product | Alpha | Beta |
Direct costs | £70,000 | £55,000 |
Proportion of fixed overhead | £18,000 | £15,000 |
Proportion of selling costs | £4,000 | £3,500 |
Net realizable value | £110,000 | £85,000 |
- Machinery:
Acquired on 1 January 2017 for £320,000, depreciated over 12 years using the reducing balance method. - Freehold property:
Acquired 18 years ago for £2,400,000, land value estimated at £700,000. Buildings are depreciated over 55 years. - Research and development:
- Research costs: £270,000
- Development costs: £390,000, benefiting over 6 years.
Required:
Discuss how these items should be accounted for in Pi Ltd's financial statements for the period ending 31 December 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.