Farmer Flounder Industries Inc. is in the business of producing organic foods for sale to restaurants and in local markets. The company uses IFRS and has a June 30 fiscal year end. As an experiment, the company has decided to try raising organic free-range chickens. On May 1, 2023, Farmer Flounder purchased 100 new hatchlings for cash at a total cost of $980. The company paid cash for feed and labour costs of $150 per month to look after the chicks. Their (acceptable) accounting policy is to capitalize these costs. On June 30, the company estimated that the chickens would mature in mid-October. At year end, the chickens had a fair value of $1,800, and the company would have to transport them to its customers at an average cost of $3 per chicken. On October 30, all 100 chickens had matured and the company sold and shipped 50 of the chickens to one of its key customers for $30 per chicken. Transportation costs were $3 per chicken, as expected. (a) Your Answer Correct Answer (Used) Prepare the journal entries to record the inventory activity relating to the chickens for the month of May. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation May 1 May 1 Biological Assets Cash (To record the inventory total costs) Biological Assets Cash (To record the feed and labour costs) Debit 980 il 150 Credit [!] 980 150
Farmer Flounder Industries Inc. is in the business of producing organic foods for sale to restaurants and in local markets. The company uses IFRS and has a June 30 fiscal year end. As an experiment, the company has decided to try raising organic free-range chickens. On May 1, 2023, Farmer Flounder purchased 100 new hatchlings for cash at a total cost of $980. The company paid cash for feed and labour costs of $150 per month to look after the chicks. Their (acceptable) accounting policy is to capitalize these costs. On June 30, the company estimated that the chickens would mature in mid-October. At year end, the chickens had a fair value of $1,800, and the company would have to transport them to its customers at an average cost of $3 per chicken. On October 30, all 100 chickens had matured and the company sold and shipped 50 of the chickens to one of its key customers for $30 per chicken. Transportation costs were $3 per chicken, as expected. (a) Your Answer Correct Answer (Used) Prepare the journal entries to record the inventory activity relating to the chickens for the month of May. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation May 1 May 1 Biological Assets Cash (To record the inventory total costs) Biological Assets Cash (To record the feed and labour costs) Debit 980 il 150 Credit [!] 980 150
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
12, please read the qestion and answer b1
Transcribed Image Text:Farmer Flounder Industries Inc. is in the business of producing organic foods for sale to restaurants and in local markets. The company
uses IFRS and has a June 30 fiscal year end.
As an experiment, the company has decided to try raising organic free-range chickens. On May 1, 2023, Farmer Flounder purchased
100 new hatchlings for cash at a total cost of $980. The company paid cash for feed and labour costs of $150 per month to look after
the chicks. Their (acceptable) accounting policy is to capitalize these costs.
On June 30, the company estimated that the chickens would mature in mid-October. At year end, the chickens had a fair value of
$1,800, and the company would have to transport them to its customers at an average cost of $3 per chicken.
On October 30, all 100 chickens had matured and the company sold and shipped 50 of the chickens to one of its key customers for $30
per chicken. Transportation costs were $3 per chicken, as expected.
(a)
Your Answer Correct Answer (Used)
Prepare the journal entries to record the inventory activity relating to the chickens for the month of May. (Credit account titles are
automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles
and enter O for the amounts. List all debit entries before credit entries.)
Date
May 1
May 1
Account Titles and Explanation
Biological Assets
Cash
(To record the inventory total costs)
Biological Assets
Cash
(To record the feed and labour costs)
Debit
980
i
150
Credit
980
150
Transcribed Image Text:(b1)
Prepare the journal entry to record the inventory activity relating to the chickens for the month of June. (Credit account titles are
automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles
and enter o for the amounts. List debit entry before credit entry.)
Date Account Titles and Explanation
June 30
Debit
Credit
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