
Concept explainers
1.Which of the following is considered as inventory to be accounted for under PAS 2?
a. Harvested cotton c. Tea
b. harvested cane d. Picked leaves
Use the following information for the next three questions:
ABC Co. has the following assets.
Maize plants 40,000
Wool 6,000
Processed fruit 20,000
Logs 60,000
Trees in a timber plantation 200,000
Grape vines 120,000
Cotton plants 20,000
Picked fruit 20,000
Harvested latex 30,000
Roasted peanuts 20,000
2. How much is classified as biological assets that are accounted for under PAS 41 Agriculture?
3. How much is classified as property, plant and equipment that are accounted for under PAS 16 Property, Plant and Equipment?
4. How much is classified as agricultural produce?
5. How much is classified as inventory?

Trending nowThis is a popular solution!
Step by stepSolved in 2 steps

- ! Required information [The following information applies to the questions displayed below.] Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1. Inventory Classification Raw material Work in process Finished goods January 1, 20x1 $ 50,000 120,000 170, 000 December 31, 20x1 $ 70,000 115,000 165,000 Durjng 20x1, the company purchased $250,000 of raw material and spent $400,000 on direct labor. Manufacturing overhead costs were as follows: Indirect material Indirect labor Depreciation on plant and equipment Utilities 24 12,000 26,000 100,000 26, 000 30,000 Other Sales revenue was $1,110,000 for the year. Selling and administrative expenses for the year amounted to $110,000. The firm's tax rate is 40 percent. Required: 7. of 9 Next > < Prev 6.arrow_forwardParker Corp. included the following items under its inventory account: Raw materials.. .P 1,400,000 200,000 650,000 60,000 150,000 2,000,000 Advances for materials ordered. Work in process.. Unexpired inventory insurance.. Advertising catalogs and packaging cartons. Finished goods inventory in the warehouse... Finished goods in the company owned retail store, stated at 50% mark-up on its cost... Finished goods in the hands of consignees including 40% profit on sales.... Finished goods in transit to customers, Shipped at FOB-Destination 750,000 400,000 stated at cost... 250,000 100,000 50,000 40,000 Finished goods out on customers' approval, at cost. Unsalable finished goods, at cost. Office stationeries and supplies. Materials in transit, shipped FOB-Shipping point, excluding P 30,000 freight cost... Goods held on consignment, at sales price, cost, P 150,000.. What is the correct amount of inventory? A. P5,375,000 330,000 200,000 В. Р 5,500,000 C. P5,540,000 D. P5,250,000arrow_forwardTHE RIGHT ANSWER IS A. I NEEN A GOOD EXPLANATION BECAUSE I NEED TO LEARN HOW TO SOLVE ITarrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





