Upsilon Ltd Date: 30 April 2024Details:Raw materials inventory (synthetics):Cost: £45,000Replacement cost: £43,000Finished goods inventory:ProductOmicronPiDirect costs£70,000£60,000Proportion of...
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Accounting
Upsilon Ltd
Date: 30 April 2024
Details:
- Raw materials inventory (synthetics):
- Cost: £45,000
- Replacement cost: £43,000
- Finished goods inventory:
Product | Omicron | Pi |
Direct costs | £70,000 | £60,000 |
Proportion of fixed overhead | £18,000 | £16,000 |
Proportion of selling costs | £5,000 | £4,500 |
Net realizable value | £110,000 | £90,000 |
- Machinery:
Acquired on 1 May 2017 for £330,000, depreciated over 9 years using the reducing balance method. - Freehold property:
Acquired 16 years ago for £2,700,000, land value estimated at £700,000. Buildings are depreciated over 60 years. - Research and development:
- Research costs: £550,000
- Development costs: £950,000, benefiting over 7 years.
Required:
Explain the accounting treatment for these items in Upsilon Ltd's financial statements for the period ending 30 April 2024.
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