Sigma Inc. Date: 31 December 2023Details:Raw material inventory (steel):Cost: £55,000Replacement cost: £53,000Finished goods inventory:ProductEpsilonZetaDirect costs£95,000£75,000Proportion of...
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Accounting
Sigma Inc.
Date: 31 December 2023
Details:
- Raw material inventory (steel):
- Cost: £55,000
- Replacement cost: £53,000
- Finished goods inventory:
Product | Epsilon | Zeta |
Direct costs | £95,000 | £75,000 |
Proportion of fixed overhead | £28,000 | £22,000 |
Proportion of selling costs | £8,000 | £7,000 |
Net realizable value | £135,000 | £110,000 |
- Furniture:
Acquired on 1 January 2020 for £180,000, depreciated over 8 years using the straight-line method. - Buildings:
Acquired 16 years ago for £2,500,000, land value estimated at £600,000. Buildings are depreciated over 60 years. - Research and development:
- Research costs: £85,000
- Development costs: £105,000, benefiting over 7 years.
Required:
Analyze how these items will impact Sigma Inc.'s financial statements for the period ending 31 December 2023.
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