Theta Co.
 Date: 31 January 2024

Details:

1. Raw material inventory (glass):
   • Cost: £42,000
   • Replacement cost: £45,000
2. 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

3. Furniture:
    Acquired on 1 February 2019 for £120,000, depreciated over 10 years with no residual value. Straight-line method is used.
4. Buildings:
    Acquired 25 years ago for £2,000,000, land value estimated at £400,000. Buildings are depreciated over 50 years.
5. 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.