Delta Ltd
 Date: 30 September 2023

Details:

• Raw materials inventory (glass):
  • Cost: £37,000
  • Replacement cost: £35,000
• Finished goods inventory:

Product	Lambda	Mu
Direct costs	£65,000	£55,000
Proportion of fixed overhead	£18,000	£15,000
Proportion of selling costs	£4,000	£3,500
Net realizable value	£100,000	£85,000

• Office equipment:
   Acquired on 1 October 2018 for £280,000, depreciated over 9 years using the reducing balance method.
• Freehold property:
   Acquired 17 years ago for £2,700,000, land value estimated at £700,000. Buildings are depreciated over 55 years.
• Research and development:
  • Research costs: £390,000
  • Development costs: £630,000, benefiting over 5 years.

Required:
 Discuss how these items should be accounted for in Delta Ltd's financial statements for the period ending 30 September 2023.