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Answer to Assignment

2011
Immature
Unit price
Commission per unit
Transfer tax per unit

200
20
6
174
2011

Mature
Unit price
Commission per unit
Transfer tax per unit

250
25
10
215
2011

2012
220
22
8
190
2012

240
24
10
206
2013

270
27
12
231
2012

Produce
Unit price
Commission per unit
Transfer tax per unit

290
29
14
247
2013

2014
260
26
12
222
2014
310
31
16
263
2014

50
5
1
44

60
6
2
52

70
7
3
60

1,000

1,500

2,000

Sales

2013

Per unit
2011
Immature
Beginning
Acquisition
New born
Transfer to mature

200

200
FVLCTD

174
34,800

2012
200
100
50
(200)
150
190
28,500

2013
150
120
50
(150)
170
206
35,020

2014
170
140
50
(170)
190
222
42,180

2011
Mature
Beginning
Acquisition
Sales
Transfer from immature

2012

2013

2014

100

240

290

(60)
200
240

(100)
150
290

(140)
170
320

100

100
FVLCTD

215
21,500

231
55,440

247
71,630

263
84,160

Grand Total

56,300

83,940

106,650

126,340

2012

2013

2014

34,800
19,000
9,500
(38,000)
3,200
28,500

28,500
24,720
10,300
(30,900)
2,400
35,020

35,020
31,080
11,100
(37,740)
2,720
42,180

2012

2013

2014

21,500

21,500
(13,860)
38,000
8,200
1,600
55,440

55,440
(24,700)
30,900
6,150
3,840
71,630

71,630
(36,820)
37,740
6,970
4,640
84,160

56,300

83,940

106,650

126,340

46,200
38,000
8,200

37,050
30,900
6,150

44,710
37,740
6,970

Reconciliation of carrying amount


2011
Immature
Beginning
Acquisition
New born
Transfer to mature
Change in FV due to Price

34,800

34,800
2011
Mature
Beginning
Acquisition
Sales
Transfer from immature
Change in FV due to Physical
Change in FV due to Price

Grand Total
FV of transferred mature
FV of transferred immature
Due to physical change

21,500

Journal Entries
2011 Biological Assets-Immature
Biological Assets-Mature
Loss on change in FV due to Price
Cash
#

34,800
21,500
8,700
65,000
2012

Biological Assets-Immature
Loss on change in FV due to Price
Cash
#
Biological Assets-Immature
Gain from Change in FV due to Physical
#

19,000
3,000

9,500

Biological Assets-Mature
Biological Assets-Immature
Gain from Change in FV due to Physical
#

46,200

10,300

44,000
5,000
1,000

36,820
4,340
2,240

37,050

44,710

2,400
3,840

37,740
6,970

2,720
4,640
6,240

78,000
44,000

7,360

120,000
78,000

78,000
9,000
3,000
50,000

36,820
6,580

30,900
6,150

4,800

Cash
Commission
Transfer tax
Sales

11,100

24,700
4,300

38,000
8,200

44,000

11,100

24,700
2,900
1,400

3,200
1,600

36,400

10,300

13,860
2,340

Agricultural Produce
Gain from change in FV due to Physical
#

31,080
5,320
28,800

9,500

13,860
1,620
720

2014

24,720
4,080
22,000

Cash
Commission
Transfer tax
Biological Assets-Mature
Gain on sale
#

Biological Assets-Immature
Biological Assets-Mature
Gain from change in FV due to Price
#

2013

120,000

120,000
14,000
6,000
90,000

140,000

#
Cost of sales
Agricultural produce

44,000

78,000
44,000

120,000
78,000

120,000

#
2012

2013

2014

Sales
Cost of Sales
Gross Profit
Aggregate gain from change in FV
Gain on sale of bio assets
Total
Expense

50,000
44,000
6,000
63,500
2,340
69,500
8,340

90,000
78,000
12,000
96,610
4,300
108,610
16,300

140,000
120,000
20,000
140,110
6,580
160,110
26,580

Net Income

61,160

92,310

133,530

2009
Cost of production
Fair value of agricultural produce at harvest per unit
Cost of transfer tax per unit at harvest
Cost of commission per unit at harvest
Number of units harvested
Number of units sold

125,000

Total Capitalized Bio Cost


Amortization

400,000
80,000

FVLCTD
FVLCTD of produce/ Cost of produce
Inventory at year end

2010
130,000

2011
145,000

2012

2013

2014

75,000
18
2
3
30,000
25,000

85,000
20
3
4
32,000
30,000

60,000
22
4
5
37,000
38,000

13
390,000

13
416,000

13
481,000

5,000

7,000

6,000

450,000
390,000
840,000

600,000
416,000
1,016,000

836,000
481,000
1,317,000

325,000

65,000
325,000

Income Statement
Sales (No. of units sold @ FV)
Gain from change in FV (produce)
Total Revenues
Cost of sales
2012
2013
2014

325,000
75,000
80,000
480,000

390,000
85,000
80,000
555,000

91,000
468,000
559,000
60,000
80,000
699,000

Gross Profit
Less: Operating Expenses
Commission
Transfer tax
Total Expenses

360,000

461,000

618,000

50,000
75,000
125,000

90,000
120,000
210,000

152,000
190,000
342,000

Net Income

235,000

251,000

276,000

Cost of production
Amortization of accumulated bio assets
Total Cost

Consumable

Quantity
3,000

Amount
1,200,000

Price
Cost of disposal
Quantity purchased

January
450
18
750

February
460
21
600

March
465
19
820

January
900
4,950

February
1,000
5,860

March
850
5,117

115
12

119
11

118
10

No. of slaughtered
No. of kilos of produce
Selling price of carcasses/kilo
Cost of slaughtering/kilo

Beginning
Purchases
Slaughtered
Ending
FVLCTD

Agricultural Produce
Beginning
Purchases
Slaughtered
FV due to Price

3,000
750
(900)
2,850

2,850
600
(1,000)
2,450

400

2,450
820
(850)
2,420

432
1,231,200

439
1,075,550

446
1,079,320

509,850

632,880

552,636

1,200,000
324,000
(388,800)
96,000
1,231,200

1,231,200
263,400
(439,000)
19,950
1,075,550

1,075,550
365,720
(379,100)
17,150
1,079,320

Biological Assets
Loss on change in FV due to Price
Cash

Biological Assets-Immature
Gain from Change in FV due to Price
Agricultural Produce
Gain from change in FV due to Physical
Biological Assets
Cash

January
324,000
13,500

February
263,400
12,600
337,500

96,000

March
365,720
15,580
276,000

19,950
96,000

509,850

17,150
19,950

632,880
61,650
388,800
59,400

381,300

17,150
552,636

129,420
439,000
64,460

122,366
379,100
51,170