Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Cost Accounting Expert

Tarheel Farm, Inc. (TFI) is a corporation involved in agricultural production and has a June 30 financial year-end. It is not publicly traded, however is required to make annual financial statements for its bank. In the past, the bank has required that these statements fulfil with US GAAP rules. At present, the bank is allowing its clients to report by using IFRS instead of US GAAP, if they prefer. TFI usually produces three products: beef cattle, winter wheat and corn. Recently, TFI also started growing a number of the hibiscus plants. All four of these products have a life cycle of less than one year.  The following information is accessible as of June 30:

a) TFI had 400 acres of field corn planted. The corn will not be harvested till the fall. The accrued cost of the corn is $95,000. The estimated selling costs are $4,500. The current land costs are $5,000 per acre. Though there is no current market value accessible for land growing a corn crop on it, TFI is certain that this land would sell for more than $2,200,000.

b) TFI had 6,000 bushels of winter wheat harvested and stored in its grain bins. The accrued cost of the wheat is $27,000. The present market price at the local elevator is $6.10 per bushel. The market price of wheat has raised 10 cents per bushel since the wheat was harvested. The transportation costs from the farm to elevator are about 5 cents per bushel.

c) TFI had a herd of cattle, including heifers and steers that have not yet been weaned. TFI doesn’t expect keeping any of the heifers for its breeding herd. The accumulated cost of the steers and heifers was $50,000. The expected selling costs were $2,000. The livestock’s local market price for these heifers and steers was $70,000.

d) At last, TFI has 500 hibiscus plants. The accumulated costs are $10 per plant and TFI does not expect any significant selling costs. Because of the rarity of this beautiful plant, there is no local market for this product. TFI sold some of these plants two months ago for $25 a plant. TFI doesn’t believe that the market for this product has changed substantially since that time.

Required

i. Obtain and review ASC 905, Agriculture, and IAS 41, Agriculture.

ii. Review and discuss what the general rules are for agricultural produce using US GAAP and IFRS.

iii. Determine the inventory valuation for TFI on June 30 using both US GAAP and IFRS.

Inventory

The Cost of Inventory

Required

- Obtain and review ASC 330-10-30, paragraphs 1 through 8, and IAS 2, paragraphs 10 through 16.

- Present a discussion of the general principle for cost inclusion into inventory for both US GAAP and IFRS.  Are these principles similar?

- Present an analysis of what costs are specifically included and excluded in inventory for both US GAAP and IFRS.  You might ignore issues of interest capitalization in inventory.

- Present a discussion of which standard is most principle-based and which one is much rules-based.

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M9902

Have any Question? 


Related Questions in Cost Accounting

Accounting1 lisa inc estimates that its employees will

Accounting 1. Lisa Inc. estimates that its employees will utilize 200,000 direct labor hours during the coming year. Total overhead costs are estimated to be $6,700,000 and machine hours are estimated to be 100,000. Actu ...

Final project milestone three guidelinesoverview

Final Project Milestone Three Guidelines Overview: Classifying a company's costs allows for an in-depth analysis of the impact that changes in output have on revenues, costs, and net income or net loss. A cost-volume-pro ...

Question 1 high-low methodtucson tractor inc has

Question 1 High-low method Tucson Tractor Inc. has accumulated the following data over a six month period   Indirect Labor Hours Indirect Labor Costs January......................... 400 $ 6,000 February................. ...

Quiz1 a process cost system would be used for all of the

QUIZ 1 A process cost system would be used for all of the following products except computer chips. chemicals. motion pictures. soft drinks. 2 Differences between a job order cost system and a process cost system include ...

Cost accounting- little debbie brownieshere is a copy of

Cost Accounting- Little Debbie Brownies Here is a copy of the assignment. My snack of choice is the Little Debbie Fudge Brownies Comprehensive Product Costing Select your favorite drink or snack item manufactured by a pu ...

Case questions rio grande medical center cost allocation

CASE QUESTIONS RIO GRANDE MEDICAL CENTER Cost Allocation Concepts 1. Is it "fair" for the Dialysis Center to suffer in profitability, and hence for the department head to possibly lose his bonus, just because the Outpati ...

Assignment discussion-cost accumulation systemwhen

Assignment: Discussion-Cost Accumulation System When companies accumulate costs, they generally use either a job-order or a process costing system. The type of system used often varies based on the type of product or ser ...

Accounting assignment1 punch products inc is considering

Accounting Assignment 1. Punch Products, Inc. is considering purchasing a new production machine and has assembled the following information from two vendors of the machine that it is considering buying:   A Products B P ...

Problem 1 master budgetomega inc has developed the

Problem 1: Master Budget Omega, Inc. has developed the following sales forecast for the first six months of the coming year Month Sales (in units) January 30,000 February 50,000 March 70,000 April 80,000 May 60,000 June ...

Requirementsdo not use any direct quotes andor cut and

Requirements: Do not use any direct quotes and/or cut and pasted information (i.e. your discussion is to be 100% your thoughts, ideals and insights). A minimum 350 words are required (this is the minimum and totally feel ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen