11.a. Farmer Brown 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 May 31 fiscal year end.

As an experiment, the company has decided to try raising organic free-range chickens. On May 1, 2020, Farmer Brown purchased 100 new hatchlings for cash at a total cost of $1,000. 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 May 31, the company estimated that the chickens had a fair value of $1,800 and the company would have to transport the chickens to their customers at an average cost of $3 per chicken. What is the value of the organic free-range chickens reported on the financial statement of position as at May 31, 2020?

	$1,500
	$1,150
	$1,800
	$1,000
	none of the above.

11.b. Tansley Ltd. took a physical inventory count on December 31 and determined that goods costing $4,000 were on hand. This amount included $1,000 of goods held on consignment for Woods Corporation. Not included in the physical count were $800 of goods purchased from Timmons Corporation, f.o.b. shipping point, and $400 of goods sold to Myers Ltd. for $600, f.o.b. destination. Both the Timmons purchase and the Myers sale were in transit at year end. What amount should Tansley report as its December 31 inventory?

	$3,000
	$5,200
	$4,200
	$4,400
	none of the above.