Sharin Sdn Bhd is in the business of sheep farming. In January 2012, a herd of 400 sheep aged two years old was imported from Australia at a cost of RM300 per sheep. The only change in 2012 was increase in physical attributes due to ageing from two to three years. On January 1, 2013, Sharin Sdn Bhd purchased another herd of 800 sheep, aged one-month old, at a price of RM100 per sheep. Transportation costs amounted to RM16,000. In February 2013, two of the sheep aged 3 years old were found dead by a worker. During 2013, the company slaughtered 350 of the xeat-old sheep and their mutton were sold for RM1,000 per sheep. Expenses incurred for the year ended December 31, 2003 are as follow: Feed costs and farming supplies Farm labour and supervision Depreciation of farm buildings and facilities Relevant fair values per sheep are as follows: RM40,000 30,000 9,000 FV per sheep as at 31 December 2012 (RM) 250 350 450 550 FV per sheep as at 31 December 2013 (RM) 150 300 400 500 600 One month One year Two years Three years Four REQUIRED: (a) Prepare the joumal entries for the above transactions for year 2012 and 2013. December (b) Draft the income statement of Sharin Sdn Bhd for the year ended 31 December 2013.
Sharin Sdn Bhd is in the business of sheep farming. In January 2012, a herd of 400 sheep aged two years old was imported from Australia at a cost of RM300 per sheep. The only change in 2012 was increase in physical attributes due to ageing from two to three years. On January 1, 2013, Sharin Sdn Bhd purchased another herd of 800 sheep, aged one-month old, at a price of RM100 per sheep. Transportation costs amounted to RM16,000. In February 2013, two of the sheep aged 3 years old were found dead by a worker. During 2013, the company slaughtered 350 of the xeat-old sheep and their mutton were sold for RM1,000 per sheep. Expenses incurred for the year ended December 31, 2003 are as follow: Feed costs and farming supplies Farm labour and supervision Depreciation of farm buildings and facilities Relevant fair values per sheep are as follows: RM40,000 30,000 9,000 FV per sheep as at 31 December 2012 (RM) 250 350 450 550 FV per sheep as at 31 December 2013 (RM) 150 300 400 500 600 One month One year Two years Three years Four REQUIRED: (a) Prepare the joumal entries for the above transactions for year 2012 and 2013. December (b) Draft the income statement of Sharin Sdn Bhd for the year ended 31 December 2013.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...
Related questions
Question
Sharin Sdn Bhd is in the business of sheep farming. In January 2012, a herd of 400 sheep aged two years old was imported from Australia at a cost of RM300 per sheep. The only change in 2012 was increase in physical attributes due to ageing from two to three years.
On January 1, 2013, Sharin Sdn Bhd purchased another herd of 800 sheep, aged one-month old, at a price of RM100 per sheep. Transportation costs amounted to RM16,000. In February 2013, two of the sheep aged 3 years old were found dead by a worker. During 2013, the company slaughtered 350 of the xeat-old sheep and their mutton were sold for RM1,000 per sheep. Expenses incurred for the year ended December 31, 2003 are as follow:
Feed costs and farming supplies
Farm labour and supervision
Depreciation of farm buildings and facilities
Relevant fair values per sheep are as follows:
RM40,000
30,000
9,000
FV per sheep as at 31 December
2012 (RM)
250
350
450
550
FV per sheep as at 31 December
2013 (RM)
150
300
400
500
600
One month
One year
Two years
Three years
Four
REQUIRED:
(a) Prepare the joumal entries for the above transactions for year 2012 and 2013.
December
(b) Draft the income statement of Sharin Sdn Bhd for the year ended 31 December 2013.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College