Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Cost Accounting Expert

Background

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

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

TFI had 6,000 bushels of winter wheat harvested and stored in its grain bins. The collected 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 increased 10 cents per bushel as the wheat was harvested. The transportation costs from the farm to the elevator are about 5 cents per bushel.

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

At last, TFI has 500 hibiscus plants. The accumulated costs are $10 per plant and TFI does not anticipate any important selling costs. Due to 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 does not believe that the market for this product has changed significantly since that time.

Required

1) find out the inventory valuation for TFI on June 30 using both US GAAP and IFRS.

2) Provide an analysis of what costs are specifically included and excluded in inventory for both US GAAP and IFRS. You can ignore issues of interest capitalization into inventory.

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M91103

Have any Question? 


Related Questions in Cost Accounting

Instructionsnbspbull all questions carry equal marksbull

Instructions:   • All Questions carry equal marks. • All Questions are compulsory • All answers to be explained in not more than 1000 words for question 1 and 2 and for question 3in not more than 500 words for each subse ...

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 ...

Discuss cost management as a professionname three

Discuss cost management as a profession Name three professional cost management organizations and explain their roles. Where in the corporate, not for profit, areas would cost accountants work and what types of work woul ...

Assignment- show the step by step solutions to the

Assignment- Show the step by step solutions to the following questions: I. A firm is able to sell 10,000 units at $ 12 per piece. The company fixed cost is $30,000. Variable cost is $6 per unit. 1. What is the contributi ...

Accounting assignmentmotorcade company has three service

Accounting Assignment Motorcade Company has three service departments (S1, S2, and S3) and two production departments (P1 and P2). The following data relate to Motorcade's allocation of service department costs:   Budget ...

Company expansion - internationallocate the financial

Company Expansion - International Locate the financial information for a company that has only domestic manufacturing operations. Assume management desires to expand into the global market with its current products. The ...

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 ...

Assignmentwhile a form of abc was being used by general

Assignment While a form of ABC was being used by General Electric back in the sixties, widespread use of ABC didn't began in the United States until the late eighties. The early focus of ABC was on developing more reliab ...

Scenario-you seemed to develop significant interest with

Scenario- You seemed to develop significant interest with your talk on the future of cost accounting. Your boss has heard about the excellent presentation and you are hopeful that your early retirement will take place. A ...

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 ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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