Bafacr 16 04 Problem Illustrations PDF

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Biological AssetsProforma EntriesBiological Asset (at FV less Point of Sale Costs) xx Loss on Initial Recognition (P/L) xx Cash (at the Purchase Price) xxBiological Asset (at FV less Point of Sale Costs) xx Income - Change in FV of Biological Asset xxBiological Assets Illustration 1 (from Millan pag...

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Biological Assets Proforma Entries Biological Asset (at FV less Point of Sale Costs) Loss on Initial Recognition (P/L) Cash (at the Purchase Price)

xx xx

Biological Asset (at FV less Point of Sale Costs) Income - Change in FV of Biological Asset

xx

xx

xx

Biological Assets Illustration 1 (from Millan page 337 - Problem 2 numbers 7 to 10) ABC Co has the following assets: Maize Plants Wool Processed fruit Logs Trees in timber plantation Grape vines Cotton plants Picked fruit Harvested latex Roasted peanuts

40,000.00 6,000.00 20,000.00 60,000.00 200,000.00 120,000.00 20,000.00 20,000.00 30,000.00 20,000.00

Biological Asset Agricultural Produce Inventory Inventory Biological Asset PPE (bearer plant) Biological Asset Agricultural Produce Agricultural Produce Inventory

How much should be accounted for as biological assets under PAS 41? How much should be accounted under PAS 16? How much should be classified as argicultural produce? How much should be classified as inventory?

260,000.00 120,000.00 56,000.00 100,000.00

C A C A

Biological Assets Illustration for Journal Entries Assume the following information: FV less point of sale costs of biological assets, at Dec 31, 20x1 Biological assets purchased during 20x2 Purchase price FV less point of sale costs upon purchase Gain arising from changes in fair value less POS costs during 20x2 Due to price changes Due to physical changes Sale of biological assets in 20x2

3,500,000.00

Carrying Amount, Jan1 Increases due to purcjases Gain - Change in FV - Price Change Gain - Change in FV - Physical change Sale Carrying Amount, Dec 31

4,000,000.00 v 3,900,000.00 v 1,200,000.00 2,500,000.00 4,200,000.00

3,500,000.00 3,900,000.00 1,200,000.00 2,500,000.00 - 4,200,000.00 6,900,000.00

What are the journal entries for the above details? Biological Asset Loss on Initial recognition of biological assets Cash

3,900,000.00 100,000.00

Biological Assets Gain - Change in FV - Price Change Gain - Change in FV - Physical change

3,700,000.00

Cash Biological Asset

4,200,000.00

4,000,000.00

1,200,000.00 2,500,000.00

4,200,000.00

Biological Assets Illustration 1 (from Millan page 340 - Problem 2 number 18) Change in FVLCS due to price change On January 1, 20x1, ABC Co. has one 1 year old animal with carrying amount of P1,000. On March 31 ABC acquired anothed animal, aged 2..25 years old for P2,000, which is the FV less cost to sell the animal on this date. One animal was born on October 1, 20x1. The fair value less cost to sell of the newborn animal on this date is P500.

FVLCS at point of transaction 1,000.00 2,000.00 500.00

FVLCS at Increase/ Year end Decrease 1,200.00 200.00 3,000.00 1,000.00 600.00 100.00 1,300.00

FVLCS at d (before remeas 1,200.00 3,000.00 600.00

FVLCS at Increase/ Year end Decrease 2,400.00 1,200.00 3,500.00 500.00 800.00 200.00 500.00 2,400.00

Jan 1 1 year old Mar 1 2.25 years old Oct 1 New born Change in FVLCS due to price change

ABC Co determine the folloiwng fair values less cost to sell on December 31, 20x1. New born 0.25 year old 1 yeara old 2 years old 2.25 years old 3 years old

600.00 800.00 1,200.00 2,400.00 3,000.00 3,500.00

What is the total gain or loss from the change in FVLCS during the period? Change in FVLCS due to price change

3,700.00 1,300.00

Change in FVLCS due to physical change

2,400.00

Change in FVLCS due to physical change Dec 31 Jan 1 1 year old 2 years old Mar 1 2.25 years old 3 years old Oct 1 New born 0.25 years old Oct 1 New born Change in FVLCS due to physical change

Biological Assets Illustration - Comprehensive A herd of 20, 2 year old animals was held on January 1, 2021. Five animals, aged 2.5 years old were purchased on July 1, 2021. On the same date, 4 animals were born. Ten animals were sold at December 31, 2021, aged 3 years old, at fair value. Per unit fair value less estimated point of sale costs were as follows: January 1, 2021 2 year old animal July 1, 2021 New born animal 2.5 year old animal December 31, 2021 New born animal 0.5 year old animal 2 year old animal 2.5 year old animal 3 year old animal

July 1

Dec 31

Dec 31

Biological Asset Cash

PRICE CHANGE Jan 1 2 year old animals July 1 2.5 year old animals July 1 New born Change in FVLCS due to price change

15,000.00

Jan 1 2 year old animals 3 years old July 1 2.5 year old anima 3 years old July 1 New born 0.5 years old Change in FVLCS due to physical change

8,500.00 9,500.00 16,500.00 23,000.00 28,000.00

100,000.00 100,000.00 32,000.00

Biological Asset Gain - Change in FV - price change Gain - Change in FV - physical change

306,000.00

Cash Biological Assets

280,000.00

FVLCS at point of transaction 15,000.00 20,000.00 8,000.00

FVLCS at Increase/ Year end Decrease 16,500.00 30,000.00 23,000.00 15,000.00 8,500.00 2,000.00 47,000.00

Number of BA 20 5 4

FVLCS at d (before remeas 16,500.00 23,000.00 8,500.00

FVLCS at Increase/ Year end Decrease 28,000.00 230,000.00 28,000.00 25,000.00 9,500.00 4,000.00 259,000.00

PHYSICAL CHANGE

8,000.00 20,000.00

Biological Asset Gain - Change in FV - physical change

Number of BA 20 5 4

RECONCILIATION Carrying Amount, Jan 1 Purchases Change in FVLCS due to price change Change in FVLCS due to physical change Sale Carrying Amount, Dec 31

-

300,000.00 100,000.00 47,000.00 291,000.00 280,000.00 458,000.00

32,000.00

47,000.00 259,000.00

280,000.00

On hand 3 year old animals 0.5 year old animals Balance, Dec 31, 2021

15 4

28,000.00 9,500.00

420,000.00 38,000.00 458,000.00 -

Inventory Accounting Systems - Specific Identificatio

Ref A B C D E F

Transaction Inventory Purchases Sales at Php 130 per unit Purchases Sales at Php 135 per unit Purchases

Units Unit Cost 2,000.00 50 18,000.00 52 7,000.00 6,000.00 55 16,000.00 3,000.00 60

Cost of Goods Sold C E E Cost of Goods Sold

7,000 11,000 5,000 23,000

52.00 52.00 55.00

364,000.00 572,000.00 275,000.00 1,211,000.00

2,000 1,000 3,000 6,000

50.00 52.00 55.00 60.00

100,000.00 55,000.00 180,000.00 335,000.00

7,000 16,000

130.00 135.00

910,000.00 2,160,000.00 3,070,000.00 - 1,211,000.00 1,859,000.00

7,000 6,000 10,000 23,000

52.00 55.00 52.00

364,000.00 330,000.00 520,000.00 1,214,000.00

2,000 1,000 3,000 6,000

50.00 52.00 55.00 60.00

100,000.00 52,000.00 180,000.00 332,000.00

7,000 16,000

130.00 135.00

910,000.00 2,160,000.00 3,070,000.00 - 1,214,000.00 1,856,000.00

2,000 5,000 13,000 3,000 23,000

50.00 52.00 52.00 55.00

100,000.00 260,000.00 676,000.00 165,000.00 1,201,000.00

Cost of Ending Inventory D F

3,000 3,000

55.00 60.00

Cost of Ending Inventory

6,000

165,000.00 180,000.00 345,000.00

7,000 16,000

130.00 135.00

910,000.00 2,160,000.00 3,070,000.00 - 1,201,000.00 1,869,000.00

2,000 18,000 6,000 3,000 29,000

50.00 52.00 55.00 60.00

100,000.00 936,000.00 330,000.00 180,000.00 1,546,000 53.31

Cost of Ending Inventory A B D F Cost of Ending Inventory Gross Profit C E Sales Cost of Goods Sold Gross Profit

Specific Inventory Assumptions Sales of C originated from B Sales of E originated from B (11,000 units) and D (5,000 units) Determine 1 Cost of Ending Inventory 2 Cost of Goods Sold 3 Gross Profit

Inventory Accounting Systems - LIFO

Ref A B C D

Transaction Inventory Purchases Sales at Php 130 per unit Purchases

Units Unit Cost 2,000.00 50 18,000.00 52 7,000.00 6,000.00 55

E F

Sales at Php 135 per unit Purchases

16,000.00 3,000.00

60

Cost of Goods Sold C E E Cost of Goods Sold Cost of Ending Inventory A B D F Cost of Ending Inventory Gross Profit C E Sales Cost of Goods Sold Gross Profit

Determine 1 Cost of Ending Inventory 2 Cost of Goods Sold 3 Gross Profit

Inventory Accounting Systems - FIFO

Ref A B C D

Transaction Inventory Purchases Sales at Php 130 per unit Purchases

Units Unit Cost 2,000.00 50 18,000.00 52 7,000.00 6,000.00 55

E F

Sales at Php 135 per unit Purchases

16,000.00 3,000.00

60

Cost of Goods Sold C C D D Cost of Goods Sold

Gross Profit C E Sales Cost of Goods Sold Gross Profit

Determine 1 Cost of Ending Inventory 2 Cost of Goods Sold 3 Gross Profit

Inventory Accounting Systems - Weighted Average (Periodic

Ref A B C D

Transaction Inventory Purchases Sales at Php 130 per unit Purchases

Units 2,000.00 18,000.00 7,000.00 6,000.00

E F

Sales at Php 135 per unit Purchases

16,000.00 3,000.00

Unit Cost 50 52 55 60

A B D F Total Weighted Cost per Unit Cost of Goods Sold C E Units sold Weighted Cost per Unit Cost of Goods Sold

7,000.00 16,000.00 23,000.00 53.31 1,226,137.93

Determine 1 Cost of Ending Inventory 2 Cost of Goods Sold 3 Gross Profit

319,862.07

Cost of Ending Inventory

Gross Profit C E Sales Cost of Goods Sold Gross Profit

29,000

23,000.00

6,000.00 53.31 319,862.07

7,000 16,000

130.00 135.00

910,000.00 2,160,000.00 3,070,000.00 - 1,226,137.93 1,843,862.07

Inventory Accounting Systems - Weighted Average (Perpetual REF

Ref A B C D

Transaction Inventory Purchases Sales at Php 130 per unit Purchases

Units Unit Cost 2,000.00 50 18,000.00 52 7,000.00 6,000.00 55

E F

Sales at Php 135 per unit Purchases

16,000.00 3,000.00

60

A B Balance C Balance D Balance E Balance F Balance

Transactions

Units

Beg Inv Purchases

2,000 18,000

Sales

-

7,000.00

-

16,000.00

Purchases

6,000.00

Sales Purchases

3,000.00

Determine 1 Cost of Ending Inventory 2 Cost of Goods Sold 3 Gross Profit

6,000.00

Cost of Ending Inventory

Gross Profit C E Sales Balance Gross Profit

338,431.58

- 23,000.00 - 1,207,568.42

Cost of Goods Sold

7,000 16,000

130.00 135.00

910,000.00 2,160,000.00 3,070,000.00 - 1,207,568.42 1,862,431.58

Cost 50.00 52.00

55.00

60.00

Balance (units) 2,000 18,000 20,000.00 - 7,000.00 13,000.00 6,000.00 19,000.00 - 16,000.00 3,000.00 3,000.00 6,000.00

Average Cost

Tota Cost 100,000.00 936,000.00 51.80 1,036,000.00 - 362,600.00 51.80 673,400.00 330,000.00 52.81 1,003,400.00 - 844,968.42 52.81 158,431.58 180,000.00 56.41 338,431.58

Subsequent Measurement of Inventory - Inventory Write-down

Cost A B C D Total Cost

185 69 31 75

Cost

NRV

A 185 195 B 69 70 C 31 28 D 75 68 Total value (lower of cost and NRV)

Units Total Cost 5,000.00 925,000.00 20,000.00 1,380,000.00 15,000.00 465,000.00 18,000.00 1,350,000.00 4,120,000.00

Lower of Cost Units Total Cost and NRV 185 5,000.00 925,000.00 69 20,000.00 1,380,000.00 28 15,000.00 420,000.00 68 18,000.00 1,224,000.00 3,949,000.00

P/L

171,000.00

Subsequent Measurement of Inventory - Inventory Write-down Journal Entries (PERIODIC) 12/31/2019 12/31/2020 12/31/2021 Cost 500 520 600 Lower of Cost and NRV 480 490 575 Loss 20 30 25 Direct Method Dr Dec 31, 2019 Inventory (ending) Income Summary

Allowance Method Dr Cr

Cr

480

500 480

500

Loss from decline in NRV of Inv (P/L) Allowance to reduce inventory NRV Dec 31, 2020 Income Summary Inventory (beginning) Inventory (ending) Income Summary

20 20

480

500 480

500

490

520 490

Dec 31, 2021 Income Summary Inventory (beginning) Inventory (ending) Income Summary

Sales 520

Loss from decline in NRV of Inv (P/L) Allowance to reduce inventory NRV

10 10

490

520 490

520

575

600 575

600 5

Allowance to reduce inventory NRV Recovery in NRV of Inventory

5

Subsequent Measurement of Inventory - Inventory Write-down Journal Entries (PERPETUAL) 12/31/2019 12/31/2020 12/31/2021 Cost 500 520 600 Lower of Cost and NRV 480 490 575 Loss 20 30 25 Direct Method Dr Dec 31, 2019 Cost of Goods Sold Inventory

Allowance Method Dr Cr

Cr

20 20

Loss from decline in NRV of Inv (P/L) Allowance to reduce inventory NRV Dec 31, 2020 Cost of Goods Sold Inventory

20 20

30 30

Loss from decline in NRV of Inv (P/L) Allowance to reduce inventory NRV Dec 31, 2021 Cost of Goods Sold Inventory Allowance to reduce inventory NRV Recovery in NRV of Inventory

CLOSING for Periodic (at year end) Inventory (ending) Income Summary Inventory (beginning) Purchases

10 10

25 25 5 5

DR CR 100,000.00 (COST OF SALES) 520,000.00 120,000.00 500,000.00 600,000

Income Summary

600,000.00...