Altura plc Date: 31 December 2023Details:Inventories of raw material, steel:Cost£35,000Replacement cost£40,000Inventory of finished goods:MaterialAlphaBetaDirect costs£75,000£45,000Proportion of...
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Accounting
Altura plc Date: 31 December 2023
Details:
Inventories of raw material, steel:
Cost
£35,000
Replacement cost
£40,000
Inventory of finished goods:
Material
Alpha
Beta
Direct costs
£75,000
£45,000
Proportion of fixed factory overhead
£20,000
£15,000
Proportion of selling costs
£5,000
£4,000
Net realizable value
£110,000
£70,000
Plant and machinery:
An item of plant was purchased on 1 January 2022 for £200,000. It has a useful life of 10 years and a residual value of £10,000. The straight-line method of depreciation is used.
Freehold property:
Acquired for £600,000, land element estimated at £100,000. The building has an expected life of 50 years.
Research and development:
Research costs related to the development of a new product: £10,000.
Development costs incurred on a project: £15,000, expected to benefit over 5 years.
Required: Prepare the necessary adjustments to the financial statements of Altura plc for the year ended 31 December 2023.
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