Delta Inc.
 Date: 30 April 2024

Details:

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

Product	Lambda	Kappa
Direct costs	£80,000	£55,000
Proportion of fixed overhead	£15,000	£12,000
Proportion of selling costs	£4,000	£3,000
Net realizable value	£120,000	£70,000

3. Vehicles:
    Purchased on 1 May 2020 for £400,000, depreciated over 10 years with no residual value. Reducing balance method is used.
4. Buildings:
    Acquired 20 years ago for £1,200,000, land value estimated at £300,000. Buildings are depreciated over 60 years.
5. Research and development:
   • Research costs: £30,000
   • Development costs: £40,000, benefiting over 4 years.

Required:
 Prepare the journal entries to reflect the above adjustments in the books of Delta Inc. for the year ending 30 April 2024.