Question
Theta Co. Date: 31 January 2024 Details: Raw material inventory (glass): Cost: 42,000 Replacement cost: 45,000 Finished goods inventory: Product Omicron Pi Direct costs
Theta Co.
Date: 31 January 2024
Details:
- Raw material inventory (glass):
- Cost: £42,000
- Replacement cost: £45,000
- Finished goods inventory:
Product | Omicron | Pi |
Direct costs | £70,000 | £50,000 |
Proportion of fixed overhead | £14,000 | £10,000 |
Proportion of selling costs | £3,500 | £3,000 |
Net realizable value | £100,000 | £65,000 |
- Furniture:
Acquired on 1 February 2019 for £120,000, depreciated over 10 years with no residual value. Straight-line method is used. - Buildings:
Acquired 25 years ago for £2,000,000, land value estimated at £400,000. Buildings are depreciated over 50 years. - R&D expenditure:
- Research: £35,000
- Development: £45,000, benefiting over 5 years.
Required:
Determine the adjustments needed in Theta Co.'s financial records for the period ending 31 January 2024.
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
9th edition
978-1285183244, 128518324X, 978-1285779263, 1285779266, 978-1285183237
