Tau Ltd Date: 31 January 2024Details:Raw materials inventory (wood):Cost: £42,000Replacement cost: £40,000Finished goods inventory:ProductAlphaBetaDirect costs£85,000£65,000Proportion of...
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Accounting
Tau Ltd
Date: 31 January 2024
Details:
- Raw materials inventory (wood):
- Cost: £42,000
- Replacement cost: £40,000
- Finished goods inventory:
Product | Alpha | Beta |
Direct costs | £85,000 | £65,000 |
Proportion of fixed overhead | £20,000 | £15,000 |
Proportion of selling costs | £5,000 | £4,000 |
Net realizable value | £130,000 | £100,000 |
- Machinery:
Acquired on 1 February 2020 for £350,000, depreciated over 10 years using the reducing balance method. - Freehold property:
Acquired 20 years ago for £3,000,000, land value estimated at £800,000. Buildings are depreciated over 50 years. - Research and development:
- Research costs: £90,000
- Development costs: £110,000, benefiting over 5 years.
Prepare the necessary financial statements adjustments for Tau Ltd as of 31 January 2024.
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