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Xi Ltd
Date: 31 March 2024
Details:
- Raw materials inventory (fiber):
- Cost: £32,000
- Replacement cost: £30,000
- Finished goods inventory:
Product | Gamma | Delta |
Direct costs | £65,000 | £55,000 |
Proportion of fixed overhead | £18,000 | £16,000 |
Proportion of selling costs | £5,000 | £4,500 |
Net realizable value | £105,000 | £85,000 |
- Vehicles:
Acquired on 1 April 2018 for £330,000, depreciated over 9 years using the reducing balance method. - Freehold property:
Acquired 18 years ago for £2,900,000, land value estimated at £750,000. Buildings are depreciated over 60 years. - Research and development:
- Research costs: £730,000
- Development costs: £1,310,000, benefiting over 7 years.
Required:
Detail the impact of these items on Xi Ltd's balance sheet and income statement for the period ending 31 March 2024.
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