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Zeta Ltd
Date: 30 April 2024
Details:
- Raw materials inventory (wood):
- Cost: £36,000
- Replacement cost: £34,000
- Finished goods inventory:
Product | Alpha | Beta |
Direct costs | £60,000 | £50,000 |
Proportion of fixed overhead | £14,000 | £12,000 |
Proportion of selling costs | £4,000 | £3,500 |
Net realizable value | £95,000 | £75,000 |
- Machinery:
Acquired on 1 May 2017 for £330,000, depreciated over 9 years using the reducing balance method. - Freehold property:
Acquired 18 years ago for £2,500,000, land value estimated at £700,000. Buildings are depreciated over 55 years. - Research and development:
- Research costs: £410,000
- Development costs: £670,000, benefiting over 7 years.
Required:
Detail how these items should be reflected in Zeta Ltd's balance sheet and income statement for the period ending 30 April 2024.
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