Psi Corporation Date: 31 December 2023Details:Raw material inventory (metal):Cost: £33,000Replacement cost: £31,000Finished goods inventory:ProductGammaDeltaDirect costs£70,000£55,000Proportion of...
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Accounting
Psi Corporation
Date: 31 December 2023
Details:
- Raw material inventory (metal):
- Cost: £33,000
- Replacement cost: £31,000
- Finished goods inventory:
Product | Gamma | Delta |
Direct costs | £70,000 | £55,000 |
Proportion of fixed overhead | £18,000 | £15,000 |
Proportion of selling costs | £5,000 | £4,500 |
Net realizable value | £110,000 | £85,000 |
- Equipment:
Acquired on 1 January 2019 for £310,000, depreciated over 10 years using the straight-line method. - Buildings:
Acquired 12 years ago for £2,300,000, land value estimated at £500,000. Buildings are depreciated over 55 years. - Research and development:
- Research costs: £340,000
- Development costs: £530,000, benefiting over 7 years.
Required:
Explain how these items should be reflected in Psi Corporation's balance sheet and income statement for the period ending 31 December 2023.
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