Xi Inc. Date: 30 June 2023Details:Raw material inventory (fiber):Cost: £45,000Replacement cost: £43,000Finished goods inventory:ProductAlphaBetaDirect costs£90,000£70,000Proportion of...
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Accounting
Xi Inc.
Date: 30 June 2023
Details:
- Raw material inventory (fiber):
- Cost: £45,000
- Replacement cost: £43,000
- Finished goods inventory:
Product | Alpha | Beta |
Direct costs | £90,000 | £70,000 |
Proportion of fixed overhead | £25,000 | £20,000 |
Proportion of selling costs | £6,000 | £5,000 |
Net realizable value | £130,000 | £95,000 |
- Furniture:
Acquired on 1 July 2019 for £200,000, depreciated over 10 years with no residual value using the straight-line method. - Buildings:
Acquired 18 years ago for £1,800,000, land value estimated at £400,000. Buildings are depreciated over 50 years. - R&D expenditure:
- Research: £65,000
- Development: £80,000, benefiting over 6 years.
Required:
Analyze how these items will impact Xi Inc.'s balance sheet and income statement for the period ending 30 June 2023.
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