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Lambda Inc.
Date: 30 June 2024
Details:
- Raw material inventory (textiles):
- Cost: £42,000
- Replacement cost: £40,000
- Finished goods inventory:
Product | Theta | Iota |
Direct costs | £70,000 | £55,000 |
Proportion of fixed overhead | £20,000 | £18,000 |
Proportion of selling costs | £5,000 | £4,500 |
Net realizable value | £110,000 | £90,000 |
- Equipment:
Acquired on 1 July 2018 for £320,000, depreciated over 7 years using the straight-line method. - Buildings:
Acquired 12 years ago for £2,400,000, land value estimated at £600,000. Buildings are depreciated over 55 years. - Research and development:
- Research costs: £220,000
- Development costs: £290,000, benefiting over 6 years.
Required:
Detail how these items should be presented in Lambda Inc.'s financial statements for the period ending 30 June 2024.
Answer & Explanation
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