Pi Ltd
 Date: 30 April 2024

Details:

• Raw materials inventory (ceramics):
  • Cost: £33,000
  • Replacement cost: £31,000
• Finished goods inventory:

Product	Theta	Iota
Direct costs	£70,000	£55,000
Proportion of fixed overhead	£18,000	£16,000
Proportion of selling costs	£4,000	£3,500
Net realizable value	£110,000	£85,000

• Machinery:
   Acquired on 1 May 2018 for £330,000, depreciated over 10 years using the reducing balance method.
• Freehold property:
   Acquired 18 years ago for £2,800,000, land value estimated at £750,000. Buildings are depreciated over 60 years.
• Research and development:
  • Research costs: £510,000
  • Development costs: £870,000, benefiting over 6 years.

Required:
 Explain how these items should be accounted for in Pi Ltd's financial statements for the period ending 30 April 2024.