Rho Ltd Date: 31 March 2024Details:Raw materials inventory (plastic):Cost: £60,000Replacement cost: £58,000Finished goods inventory:ProductKappaSigmaDirect costs£100,000£80,000Proportion of...
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Accounting
Rho Ltd
Date: 31 March 2024
Details:
- Raw materials inventory (plastic):
- Cost: £60,000
- Replacement cost: £58,000
- Finished goods inventory:
Product | Kappa | Sigma |
Direct costs | £100,000 | £80,000 |
Proportion of fixed overhead | £25,000 | £20,000 |
Proportion of selling costs | £7,000 | £6,000 |
Net realizable value | £150,000 | £110,000 |
- Office equipment:
Acquired on 1 April 2019 for £400,000, depreciated over 10 years using the reducing balance method. - Freehold property:
Acquired 15 years ago for £2,800,000, land value estimated at £700,000. Buildings are depreciated over 50 years. - Research and development:
- Research costs: £80,000
- Development costs: £100,000, benefiting over 6 years.
Explain how these items should be recorded in Rho Ltd's balance sheet and income statement for the year ending 31 March 2024.
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