Epsilon Ltd
 Date: 31 March 2023

Details:

• Raw materials inventory (textiles):
  • Cost: £50,000
  • Replacement cost: £55,000
• Finished goods inventory:

Product	Mu	Nu
Direct costs	£90,000	£60,000
Proportion of fixed overhead	£18,000	£15,000
Proportion of selling costs	£5,000	£4,000
Net realizable value	£130,000	£80,000

• Office equipment:
   Acquired on 1 April 2021 for £100,000, depreciated over 5 years using the straight-line method.
• Freehold property:
   Acquired 10 years ago for £900,000, land value estimated at £250,000. Buildings are depreciated over 50 years.
• Research and development:
  • Research costs: £15,000
  • Development costs: £20,000, benefiting over 7 years.

Required:
 Evaluate how each of these items should be recorded in Epsilon Ltd's financial statements for the year ending 31 March 2023.