Alpha Inc.
 Date: 31 October 2023

Details:

1. Raw material inventory (synthetics):
   • Cost: £40,000
   • Replacement cost: £38,000
2. Finished goods inventory:

Product	Omicron	Pi
Direct costs	£80,000	£65,000
Proportion of fixed overhead	£20,000	£18,000
Proportion of selling costs	£6,000	£5,500
Net realizable value	£125,000	£100,000

3. Furniture:
    Acquired on 1 November 2017 for £300,000, depreciated over 9 years using the straight-line method.
4. Buildings:
    Acquired 17 years ago for £2,900,000, land value estimated at £800,000. Buildings are depreciated over 55 years.
5. Research and development:
   • Research costs: £360,000
   • Development costs: £570,000, benefiting over 5 years.

Required:
 Analyze the impact of these items on Alpha Inc.'s financial statements for the period ending 31 October 2023.