Chapter 4 Biological Assets

E-4-3
Carrying Amount, Jan. 1
Purchases
Gain arising from changaes in fair value less cost to sell
Gain arising from changaes in fair value less cost to sell
Sales
Carrying Amount,Dec. 31

E- 4-4
Carrying amount , Jan. 1 10 herd @ P 10,000 100,000
Purchases 10,800
Increase in FV due to Price change 5,500
Increase in FV due to Physical Change 23,700
Carrying amount , Dec. 31 140,000

I compute first the changes in

price then Physical changes .
Then after the Carrying Changes in Physical The initial
amount , Dec. 31 herd is 2 yr. old is P10,000 then
P 10,500 and on Dec. 31 herd is
3yr old now so the price is P
12,000.
 620,000
480,000
230,000
160,000
-840,000
650,000

Changes in Price
2-yr old Dec. 31 10,500
Jan.1 10,000 500 X 10 5,000
New- born Dec. 31 7,200
Jul-01 7,000 200
2.5 yr.old Dec. 31 11,100
Jul-01 10,800 300
Increase in Fair value due to price change. 5500
Physical The initial
r. old is P10,000 then
nd on Dec. 31 herd is Physical Change
w so the price is P 3 yr old Dec. 31 12,000
2 yr old Dec. 31 10,500 1,500 x 10 15,000
0.5 yr. old Dec. 31 8,000
Dec. 31 7,200 800
new born July 1 7,000
Acquired July 1
3 Yr.old Dec. 31 12,000
2.5 yr old Dec. 31 11,100 900
Increase in FV due to Physical Change 23,700
E-4-5 E-4-6

1 Biological Assets 500,000 1

Gain 500,000

2 Expenses 5,000 2
Cash 5,000

3 Inventory 698,000 3
Biological Assets 600,000
Gain 98,000
4
4 In ventory 30,000
Cash 30,000
5
5 Cash 880,000
Sales 880,000

Cost of Sales 728,000 6

Inventory 728,000
Biological Assets 55,000
Cash 55,000

Expenses 72,500
Cash 72,500

Biological Assets 185,000

Gain 185,000

Expenses 10,000
Cash 10,000

Inventory 247,500
Biological Assets 240,000
Gain 7,500

Cash 247,500
Sales 247,500