Phi Inc.
 Date: 31 March 2024

Details:

1. Raw material inventory (wood):
   • Cost: £30,000
   • Replacement cost: £28,000
2. Finished goods inventory:

Product	Gamma	Delta
Direct costs	£65,000	£55,000
Proportion of fixed overhead	£18,000	£16,000
Proportion of selling costs	£5,500	£5,000
Net realizable value	£105,000	£85,000

3. Equipment:
    Acquired on 1 April 2018 for £350,000, depreciated over 8 years using the straight-line method.
4. Buildings:
    Acquired 18 years ago for £2,800,000, land value estimated at £700,000. Buildings are depreciated over 55 years.
5. Research and development:
   • Research costs: £560,000
   • Development costs: £970,000, benefiting over 6 years.

Required:
 Detail the necessary financial statement adjustments for Phi Inc. as of 31 March 2024.