Alpha Ltd
 Date: 31 May 2024

Details:

• Raw materials inventory (cotton):
  • Cost: £40,000
  • Replacement cost: £38,000
• Finished goods inventory:

Product	Phi	Chi
Direct costs	£80,000	£65,000
Proportion of fixed overhead	£20,000	£15,000
Proportion of selling costs	£5,000	£4,000
Net realizable value	£120,000	£90,000

• Machinery:
   Acquired on 1 June 2020 for £300,000, depreciated over 8 years using the reducing balance method.
• Freehold property:
   Acquired 19 years ago for £2,200,000, land value estimated at £550,000. Buildings are depreciated over 55 years.
• Research and development:
  • Research costs: £125,000
  • Development costs: £160,000, benefiting over 6 years.

Required:
 Explain how these items should be presented in Alpha Ltd's financial statements for the year ending 31 May 2024.