BANANA Surfing the Standards BANANA, Inc (BANANA) is an Ohio corporation involved in agricultural production and has an October 31 fiscal year end It is not publicly traded, but it is required to prepare annual financial statements complying with U S GAAP for its bank BANANA typically produces four products beef cattle, corn, winter wheat, and sugar beets All four of these products have a life cycle of less than 1 year The following information is available as of October 31 BANANA had 400 acres of field corn planted The corn will not be harvested until next month The accumulated cost of the corn is $95,000 The estimated selling costs are $4,500 The current market value of land is $5,000 per acre Although there is no current market value available for land growing a corn crop on it, BANANA is certain that this land would sell for more than $2,200,000 BANANA had 6,000 bushels of winter wheat harvested and stored in its grain bins The accumulated cost of the wheat is $27,000 The current market price at the local elevator is $6 10 per bushel The market price of wheat has increased 10 cents per bushel since the wheat was harvested The transportation costs from the farm to the elevator are about 5 cents per bushel BANANA has a herd of cattle, including heifers and steers, that have not yet been weaned BANANA does not anticipate keeping any of the heifers for its breeding herd The accumulated cost of the heifers and steers is $50,000 The expected selling costs are $2,000 The replacement cost and selling price for these heifers and steers is $70,000 Finally, BANANA has 200 tons of sugar beets harvested The accumulated costs are $25 per ton BANANA anticipates selling costs of $3 per ton Due to the rarity of the production of sugar beets in Ohio, there is no local market for sugar beets BANANA sold a few tons of sugar beets two months ago for $50 a ton however, the market is not stable at this time Provide a solution to how each agricultural products should be valued on BANANAs balance sheet Support your conclusions using the Codification

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Posted on Sep 15, 2024

BANANA Surfing the Standards BANANA, Inc. (BANANA) is an Ohio corporation involved in agricultural production and has an October 31 fiscal year-end. It is not

BANANA Surfing the Standards

BANANA, Inc. (BANANA) is an Ohio corporation involved in agricultural production and has an October 31 fiscal year-end. It is not publicly traded, but it is required to prepare annual financial statements complying with U.S. GAAP for its bank. BANANA typically produces four products: beef cattle, corn, winter wheat, and sugar beets. All four of these products have a life cycle of less than 1 year. The following information is available as of October 31:

BANANA had 400 acres of field corn planted. The corn will not be harvested until next month. The accumulated cost of the corn is $95,000. The estimated selling costs are $4,500. The current market value of land is $5,000 per acre. Although there is no current market value available for land growing a corn crop on it, BANANA is certain that this land would sell for more than $2,200,000.
BANANA had 6,000 bushels of winter wheat harvested and stored in its grain bins. The accumulated cost of the wheat is $27,000. The current market price at the local elevator is $6.10 per bushel. The market price of wheat has increased 10 cents per bushel since the wheat was harvested. The transportation costs from the farm to the elevator are about 5 cents per bushel.
BANANA has a herd of cattle, including heifers and steers, that have not yet been weaned. BANANA does not anticipate keeping any of the heifers for its breeding herd. The accumulated cost of the heifers and steers is $50,000. The expected selling costs are $2,000. The replacement cost and selling price for these heifers and steers is $70,000.
Finally, BANANA has 200 tons of sugar beets harvested. The accumulated costs are $25 per ton. BANANA anticipates selling costs of $3 per ton. Due to the rarity of the production of sugar beets in Ohio, there is no local market for sugar beets. BANANA sold a few tons of sugar beets two months ago for $50 a ton; however, the market is not stable at this time.

Provide a solution to how each agricultural products should be valued on BANANAs balance sheet. Support your conclusions using the Codification.