Rho Ltd Date: 31 January 2024Details:Raw material inventory (fiber):Cost: £45,000Replacement cost: £43,000Finished goods inventory:ProductThetaLambdaDirect costs£80,000£65,000Proportion of...
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Accounting
Rho Ltd
Date: 31 January 2024
Details:
- Raw material inventory (fiber):
- Cost: £45,000
- Replacement cost: £43,000
- Finished goods inventory:
Product | Theta | Lambda |
Direct costs | £80,000 | £65,000 |
Proportion of fixed overhead | £20,000 | £18,000 |
Proportion of selling costs | £5,000 | £4,500 |
Net realizable value | £125,000 | £100,000 |
- Equipment:
Acquired on 1 February 2017 for £350,000, depreciated over 10 years using the straight-line method. - Buildings:
Acquired 22 years ago for £3,000,000, land value estimated at £750,000. Buildings are depreciated over 60 years. - Research and development:
- Research costs: £280,000
- Development costs: £410,000, benefiting over 7 years.
Required:
Analyze the impact of these items on Rho Ltd's financial statements for the year ending 31 January 2024.
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