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Problem 1
Problem 1
A herd of 10, 2-yr old animals was held at January 1, 2019. One animal aged 2 1/2 yrs was
purchased on July 1, 2019 for ₱1080 and one animal was born on July 1, 2019. No animals were sold or
disposed of during the period. Per unit fair values less costs to sell were as follows:
1. How much is the increase in fair value less estimated costs to sell due to price change?
2. How much is the fair value less estimated costs to sell due to physical change?
3. How much is the fair value less costs to sell of herd at December 31, 2019?
PROBLEM 2
Dub dairy produces milk to sell to local and national ice cream producers. Dub dairy began
operations on January 1, 2019 by purchasing 840 milk cows for ₱1,176,000. The following information at
year end are as follow:
Milking cows:
1. At december 31, 2019, what is the value of the milking cows on dub dairy's statement of financial
position?