Egoy Company is a producer of coffee. The entitty is considering the valuation of harvested coffee beans. Industry practice is to value the coffee beans at market value ans uses as reference as publication "accounting for successful farms". On December 31, 2016, the entity has harvested coffee beans costing P3,000,000.00 and with a fair value less cost to sell of P3,500,000.00 at the point of harvest. Because of the long aging and maturation process after harvest, the harvested coffee beans were still on hand on December 31, 2017. On such date, the fair value less cost of disposal is P3,900,000 and net realizable value is P3,200,000.00 What is the measurement of the coffee beans inventory on December 31, 2017? Select the correct response:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

a6. please help me to get the right answer.

Egoy Company is a producer of coffee. The entitty is considering the valuation of harvested coffee beans. Industry practice is to value the coffee beans at
market value ans uses as reference as publication "accounting for successful farms".
On December 31, 2016, the entity has harvested coffee beans costing P3,000,000.00 and with a fair value less cost to sell of P3,500,000.00 at the point of
harvest.
Because of the long aging and maturation process after harvest, the harvested coffee beans were still on hand on December 31, 2017.
On such date, the fair value less cost of disposal is P3,900,000 and net realizable value is P3,200,000.00
What is the measurement of the coffee beans inventory on December 31, 2017?
Select the correct response:
Transcribed Image Text:Egoy Company is a producer of coffee. The entitty is considering the valuation of harvested coffee beans. Industry practice is to value the coffee beans at market value ans uses as reference as publication "accounting for successful farms". On December 31, 2016, the entity has harvested coffee beans costing P3,000,000.00 and with a fair value less cost to sell of P3,500,000.00 at the point of harvest. Because of the long aging and maturation process after harvest, the harvested coffee beans were still on hand on December 31, 2017. On such date, the fair value less cost of disposal is P3,900,000 and net realizable value is P3,200,000.00 What is the measurement of the coffee beans inventory on December 31, 2017? Select the correct response:
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Database management system (DBMS)
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
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education