Gamma Ltd
 Date: 31 August 2023

Details:

1. Raw material inventory (plastic):
   • Cost: £32,000
   • Replacement cost: £30,000
2. Finished goods inventory:

Product	Theta	Iota
Direct costs	£70,000	£60,000
Proportion of fixed overhead	£18,000	£16,000
Proportion of selling costs	£5,500	£5,000
Net realizable value	£110,000	£90,000

3. Furniture:
    Acquired on 1 September 2016 for £310,000, depreciated over 9 years using the straight-line method.
4. Buildings:
    Acquired 14 years ago for £2,700,000, land value estimated at £650,000. Buildings are depreciated over 55 years.
5. Research and development:
   • Research costs: £860,000
   • Development costs: £1,570,000, benefiting over 7 years.

Required:
 Prepare the necessary journal entries for these items in Gamma Ltd's financial records for the period ending 31 August 2023.