Theta Inc.
 Date: 30 June 2024

Details:

1. Raw material inventory (aluminium):
   • Cost: £60,000
   • Replacement cost: £58,000
2. Finished goods inventory:

Product	Epsilon	Zeta
Direct costs	£90,000	£70,000
Proportion of fixed overhead	£22,000	£18,000
Proportion of selling costs	£6,000	£5,000
Net realizable value	£130,000	£105,000

3. Equipment:
    Acquired on 1 July 2019 for £450,000, depreciated over 8 years using the straight-line method.
4. Buildings:
    Acquired 12 years ago for £3,200,000, land value estimated at £750,000. Buildings are depreciated over 60 years.
5. Research and development:
   • Research costs: £190,000
   • Development costs: £240,000, benefiting over 6 years.

Required:
 Prepare the financial statement adjustments for Theta Inc. for the period ending 30 June 2024.