solve please

Q 5. Comment on the followings; (i) Lakshita Limited (LL) is engaged in manufacturing leather products. Its factory is located at Topsia in Kolkata. The state government, as a policy, has decided to shift leather units to the outskirts of the city and has developed a leather complex. In order to comply with the government's directive, LL has decided to shift its manufacturing facility to the leather complex. Required: The company proposes to allocate relocation cost to items of PP\&E in proportion to their respective carrying amount. However, it is also open to the alternative accounting of capitalizing the relocation cost as a separate item of intangible assets. (ii) Nandini Cables Limited (NCL) imported equipment to produce cables. After installation, the equipment could not produce cables of intended quality and size. NCL started negotiating with the supplier to rectify or replace the equipment. This turned into a long-drawn dispute. In order to mitigate the financial loss, the firm started producing and marketing sub-quality cables, until a settlement with the supplier could be reached. The production and sale of sub-standard wires resulted in loss because the direct cost of production was higher than the sales realization. Required: Explain the loss caused till the equipment was rectified. Could the company produce the intended product (standard wire)? (iii) Firoza Limited (FL) manufactures an exclusive herbal fairness cream which is marketed by a multinational company under its own brand name at a premium over the average price of other fairness creams available in the market. The management has estimated the normal capacity at 100,000 units. In 2009, FL. could produce only 60,000 units of the product as it could not procure the required quantity of herbs. During the year, production of herbs was low due to climatic conditions. The fixed production overheads incurred during the year was Rs. 10,00,000 Required: Calculate the amount of fixed production overheads to be assigned to each unit produced during 2009 to calculate the cost of sales and cost of inventories held by FL at the balance sheet date. (iv) Keya Limited (KL) is a retailer. It has several retail stores across the country. The company negotiates prices with suppliers and places orders centrally. Suppliers deliver goods at central warehouses. Each city, which has more than one retail store, has warehouse. Stores in a city place order on the central warehouse for replenishment of stock twice a week. KL seeks your advice on how to calculate the cost of inventories in different stores at the balance sheet date. It provides the following information about an item, which is one among the fast-moving items: held at the balance sheet date. (14) Q 5. Comment on the followings; (i) Lakshita Limited (LL) is engaged in manufacturing leather products. Its factory is located at Topsia in Kolkata. The state government, as a policy, has decided to shift leather units to the outskirts of the city and has developed a leather complex. In order to comply with the government's directive, LL has decided to shift its manufacturing facility to the leather complex. Required: The company proposes to allocate relocation cost to items of PP\&E in proportion to their respective carrying amount. However, it is also open to the alternative accounting of capitalizing the relocation cost as a separate item of intangible assets. (ii) Nandini Cables Limited (NCL) imported equipment to produce cables. After installation, the equipment could not produce cables of intended quality and size. NCL started negotiating with the supplier to rectify or replace the equipment. This turned into a long-drawn dispute. In order to mitigate the financial loss, the firm started producing and marketing sub-quality cables, until a settlement with the supplier could be reached. The production and sale of sub-standard wires resulted in loss because the direct cost of production was higher than the sales realization. Required: Explain the loss caused till the equipment was rectified. Could the company produce the intended product (standard wire)? (iii) Firoza Limited (FL) manufactures an exclusive herbal fairness cream which is marketed by a multinational company under its own brand name at a premium over the average price of other fairness creams available in the market. The management has estimated the normal capacity at 100,000 units. In 2009, FL. could produce only 60,000 units of the product as it could not procure the required quantity of herbs. During the year, production of herbs was low due to climatic conditions. The fixed production overheads incurred during the year was Rs. 10,00,000 Required: Calculate the amount of fixed production overheads to be assigned to each unit produced during 2009 to calculate the cost of sales and cost of inventories held by FL at the balance sheet date. (iv) Keya Limited (KL) is a retailer. It has several retail stores across the country. The company negotiates prices with suppliers and places orders centrally. Suppliers deliver goods at central warehouses. Each city, which has more than one retail store, has warehouse. Stores in a city place order on the central warehouse for replenishment of stock twice a week. KL seeks your advice on how to calculate the cost of inventories in different stores at the balance sheet date. It provides the following information about an item, which is one among the fast-moving items: held at the balance sheet date. (14)