Lambda Inc.
 Date: 31 October 2023

Details:

1. Raw material inventory (glass):
   • Cost: £35,000
   • Replacement cost: £33,000
2. Finished goods inventory:

Product	Gamma	Delta
Direct costs	£70,000	£55,000
Proportion of fixed overhead	£20,000	£18,000
Proportion of selling costs	£5,500	£5,000
Net realizable value	£110,000	£85,000

3. Furniture:
    Acquired on 1 November 2017 for £300,000, depreciated over 8 years using the straight-line method.
4. Buildings:
    Acquired 15 years ago for £2,700,000, land value estimated at £700,000. Buildings are depreciated over 55 years.
5. Research and development:
   • Research costs: £700,000
   • Development costs: £1,250,000, benefiting over 5 years.

Required:
 Detail the necessary financial statement adjustments for Lambda Inc. as of 31 October 2023.