Delta Inc. Date: 30 April 2024 Details: Raw material inventory (textiles): Cost: 50,000 Replacement cost: 48,000
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Question:
Delta Inc.
Date: 30 April 2024
Details:
- Raw material inventory (textiles):
- Cost: £50,000
- Replacement cost: £48,000
- Finished goods inventory:
Product | Lambda | Kappa |
Direct costs | £85,000 | £70,000 |
Proportion of fixed overhead | £22,000 | £18,000 |
Proportion of selling costs | £5,500 | £4,500 |
Net realizable value | £130,000 | £100,000 |
- Furniture:
Acquired on 1 May 2020 for £250,000, depreciated over 8 years using the straight-line method. - Buildings:
Acquired 20 years ago for £3,000,000, land value estimated at £750,000. Buildings are depreciated over 60 years. - Research and development:
- Research costs: £150,000
- Development costs: £200,000, benefiting over 5 years.
Required:
Prepare the journal entries for Delta Inc. to record the adjustments as of 30 April 2024.
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