Mu Co.
 Date: 31 August 2023

Details:

1. Raw material inventory (aluminium):
   • Cost: £50,000
   • Replacement cost: £48,000
2. Finished goods inventory:

Product	Psi	Omega
Direct costs	£75,000	£65,000
Proportion of fixed overhead	£20,000	£18,000
Proportion of selling costs	£5,000	£4,000
Net realizable value	£110,000	£85,000

3. Equipment:
    Acquired on 1 September 2020 for £450,000, depreciated over 10 years using the straight-line method.
4. Buildings:
    Acquired 21 years ago for £1,500,000, land value estimated at £300,000. Buildings are depreciated over 55 years.
5. Research and development:
   • Research costs: £55,000
   • Development costs: £65,000, benefiting over 3 years.

Required:
 Calculate the depreciation expenses and inventory valuations for Mu Co. as of 31 August 2023.