Tau Inc. Date: 31 January 2024Details:Raw material inventory (metal):Cost: £32,000Replacement cost: £30,000Finished goods inventory:ProductAlphaBetaDirect costs£75,000£60,000Proportion of...
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Accounting
Tau Inc. Date: 31 January 2024
Details:
Raw material inventory (metal):
Cost: £32,000
Replacement cost: £30,000
Finished goods inventory:
Product
Alpha
Beta
Direct costs
£75,000
£60,000
Proportion of fixed overhead
£20,000
£18,000
Proportion of selling costs
£6,000
£5,500
Net realizable value
£115,000
£90,000
Furniture: Acquired on 1 February 2018 for £300,000, depreciated over 8 years using the straight-line method.
Buildings: Acquired 17 years ago for £2,500,000, land value estimated at £650,000. Buildings are depreciated over 55 years.
Research and development:
Research costs: £540,000
Development costs: £930,000, benefiting over 6 years.
Required: Analyze the financial statement impact of these items for Tau Inc. for the year ending 31 January 2024.
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