Rho Corporation Date: 31 August 2023Details:Raw material inventory (rubber):Cost: £36,000Replacement cost: £34,000Finished goods inventory:ProductLambdaMuDirect costs£70,000£55,000Proportion of...
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Accounting
Rho Corporation
Date: 31 August 2023
Details:
- Raw material inventory (rubber):
- Cost: £36,000
- Replacement cost: £34,000
- Finished goods inventory:
Product | Lambda | Mu |
Direct costs | £70,000 | £55,000 |
Proportion of fixed overhead | £20,000 | £18,000 |
Proportion of selling costs | £5,000 | £4,500 |
Net realizable value | £110,000 | £85,000 |
- Office machinery:
Acquired on 1 September 2016 for £280,000, depreciated over 8 years using the straight-line method. - Buildings:
Acquired 15 years ago for £2,500,000, land value estimated at £600,000. Buildings are depreciated over 55 years. - Research and development:
- Research costs: £520,000
- Development costs: £890,000, benefiting over 5 years.
Detail the impact of these items on Rho Corporation's balance sheet and income statement for the period ending 31 August 2023.
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