Can you please prepare an inventory evaluation report using the specific identification method
Exhibit III Financial Information Related to inventory During the year, RN started its Christmas tree farm by purchas- ing 8,000 white pine seedlings for $8 each. The seedlings are just below one foot tall when planted this year. Approximately 3% of all seedlings do not survive their first year. RN purchased and instaled a sprinkler system that covers farm land area (seasonal and Christmas trees) for a total of $175,000. The system has an expected useful life of 8 years. RN consumed $55,000 in water directly related to the use of the sprinkler system. RN hired two student employees to work directly to maintain (prune, weed, water, etc.) the seasonal produce and Christmas trees. The two employees earned $35,000 in total over the course of the summer months. RN incurred costs of $13,000 for seeds related to the seasonal produce items. RN utilized fertilizers during the past year in order to aid with the growth process. Super Grow fertilizer was used for both the seasonal produce and trees, and cost $29,000. In addition, a total of $17,500 worth of Tree Booster was purchased during the year. A total of $2,500 worth of the product remained at year end. An organic pesticide was used during the year as well. A total of $27,000 and $34,000 was spent on Tree Bug Zapper and Pest Be Gone, respectively. The ending balance of Tree Bug Zapper and Pest Be Gone was $3,500 and $2,500, respectively. In order to help aerate the soil, RN purchased a land cultivator for $55,000. The equipment is expected to have a useful life of six years, and was used for the land around both the seasonal produce and trees. RN purchased 100 chickens (87 hens able to lay eggs, 10 chicks, and 3 roosters) for a total cost of $950 from a local farm. The hens are expected to be able to lay eggs for the next five years, at which point the hens will be sold for $8 each to a local gro- cery store. RN purchased $6,500 of chicken feed during the year. The year-end inventory of chicken feed is $2,250. In addition, RN purchased a cage for $2,500, which is expected to last 12 years. A dozen eggs are sold for $4, which reflects a premium as they are sold as organic eggs. Hens can be sold in the open market for $8 per hen. Exhibit II Information from RN's Operations Year end based on its equivalent of a commodity spot price. The following Jenny selected the fiscal year to run from January 1 to December are the current Christmas tree prices for white pine: 31 in order to capture a full season of the seasonal produce and corn field activities. 3 Feet: $30 7 Feet: $45 Note: estimated selling costs Seasonal produce are 10% of the sales price. 4 Feet: $35 8 Feet: S47 RN grows a variety of seasonal produce, including peas, $38 strawberries, cucumbers, and peppers. 5 Feet: 9 Feet: $55 . At the end of the season, RN sells produce through various 6 Feet: $40 means: (1) in bundles through their storefront; (2) through local retailers that promote local produce; (3) through farmer's . Generally, white pine trees are not grown to exceed 9 feet as markets, and (4) by allowing customers to pick their own basket their retail commercial value disappears at this level. of produce on site. Trees are scrapped as soon as it becomes apparent that they no The corn field is a component of the seasonal produce. The corn longer have any value. Aside from any weather calamities or is grown and then sold through the same outlets as the rest of the insect infestation outbreaks, the scrappage rate is fairly seasonal produce. During the month of October, the corn field is consistent from year to year. turned into a Halloween corn field, whereby customers walk The growth rate for white pine depends a lot on whether trees through for $10. The Halloween corn field was a huge success are free to grow or are suppressed under a canopy. Average this year, and a great source of supplemental income. Jenny paid height growth for young suppressed white pine is often less than $7,500 to design the layout of the corn field, and to purchase the 6 inches per year. However, with free-to grow trees on the better required accessories. sites, height growth is normally 2-3 feet per year. Christmas trees Farm yard The Christmas tree market can be classified as pure competition .. During the past year, RN set up a chicken pen. The chickens are There is an abundant supply of trees, such that any individual used to produce eggs, which are sold through retailers and at supplier cannot impact the price. In addition, there are an farmers' markets. Eventually, the chickens will be sold as poultry. abundant number of purchasers, such that any single purchaser A hen's reproduction cycle is set by the length of the day. During cannot impact the price. Finally, the product is considered to be the summer months, a hen usually produces one egg per day. A homogenous as well, aside from the type of tree (e.g., Douglas hen will lay fewer eggs as the day shortens, eventually skipping fir, white pine). Although trees may come in different shapes and days between laying eggs. Many hens stop laying eggs all together colours, the value of a tree is based solely on its height (the until the spring arrives because winter is a bad time to raise chicks shape can be altered through pruning while colour can be given that cold weather decreases a chick's chance of survival. adjusted through dyes). RN is planning to purchase cattle next year, and offer dairy A Christmas tree is priced similar to any commodity that trades products as well (milk cheese, etc.). No expenses have been in a market. The market price of a Christmas tree is determined incurred in this regard for the current year. Exhibit III Financial Information Related to inventory During the year, RN started its Christmas tree farm by purchas- ing 8,000 white pine seedlings for $8 each. The seedlings are just below one foot tall when planted this year. Approximately 3% of all seedlings do not survive their first year. RN purchased and instaled a sprinkler system that covers farm land area (seasonal and Christmas trees) for a total of $175,000. The system has an expected useful life of 8 years. RN consumed $55,000 in water directly related to the use of the sprinkler system. RN hired two student employees to work directly to maintain (prune, weed, water, etc.) the seasonal produce and Christmas trees. The two employees earned $35,000 in total over the course of the summer months. RN incurred costs of $13,000 for seeds related to the seasonal produce items. RN utilized fertilizers during the past year in order to aid with the growth process. Super Grow fertilizer was used for both the seasonal produce and trees, and cost $29,000. In addition, a total of $17,500 worth of Tree Booster was purchased during the year. A total of $2,500 worth of the product remained at year end. An organic pesticide was used during the year as well. A total of $27,000 and $34,000 was spent on Tree Bug Zapper and Pest Be Gone, respectively. The ending balance of Tree Bug Zapper and Pest Be Gone was $3,500 and $2,500, respectively. In order to help aerate the soil, RN purchased a land cultivator for $55,000. The equipment is expected to have a useful life of six years, and was used for the land around both the seasonal produce and trees. RN purchased 100 chickens (87 hens able to lay eggs, 10 chicks, and 3 roosters) for a total cost of $950 from a local farm. The hens are expected to be able to lay eggs for the next five years, at which point the hens will be sold for $8 each to a local gro- cery store. RN purchased $6,500 of chicken feed during the year. The year-end inventory of chicken feed is $2,250. In addition, RN purchased a cage for $2,500, which is expected to last 12 years. A dozen eggs are sold for $4, which reflects a premium as they are sold as organic eggs. Hens can be sold in the open market for $8 per hen. Exhibit II Information from RN's Operations Year end based on its equivalent of a commodity spot price. The following Jenny selected the fiscal year to run from January 1 to December are the current Christmas tree prices for white pine: 31 in order to capture a full season of the seasonal produce and corn field activities. 3 Feet: $30 7 Feet: $45 Note: estimated selling costs Seasonal produce are 10% of the sales price. 4 Feet: $35 8 Feet: S47 RN grows a variety of seasonal produce, including peas, $38 strawberries, cucumbers, and peppers. 5 Feet: 9 Feet: $55 . At the end of the season, RN sells produce through various 6 Feet: $40 means: (1) in bundles through their storefront; (2) through local retailers that promote local produce; (3) through farmer's . Generally, white pine trees are not grown to exceed 9 feet as markets, and (4) by allowing customers to pick their own basket their retail commercial value disappears at this level. of produce on site. Trees are scrapped as soon as it becomes apparent that they no The corn field is a component of the seasonal produce. The corn longer have any value. Aside from any weather calamities or is grown and then sold through the same outlets as the rest of the insect infestation outbreaks, the scrappage rate is fairly seasonal produce. During the month of October, the corn field is consistent from year to year. turned into a Halloween corn field, whereby customers walk The growth rate for white pine depends a lot on whether trees through for $10. The Halloween corn field was a huge success are free to grow or are suppressed under a canopy. Average this year, and a great source of supplemental income. Jenny paid height growth for young suppressed white pine is often less than $7,500 to design the layout of the corn field, and to purchase the 6 inches per year. However, with free-to grow trees on the better required accessories. sites, height growth is normally 2-3 feet per year. Christmas trees Farm yard The Christmas tree market can be classified as pure competition .. During the past year, RN set up a chicken pen. The chickens are There is an abundant supply of trees, such that any individual used to produce eggs, which are sold through retailers and at supplier cannot impact the price. In addition, there are an farmers' markets. Eventually, the chickens will be sold as poultry. abundant number of purchasers, such that any single purchaser A hen's reproduction cycle is set by the length of the day. During cannot impact the price. Finally, the product is considered to be the summer months, a hen usually produces one egg per day. A homogenous as well, aside from the type of tree (e.g., Douglas hen will lay fewer eggs as the day shortens, eventually skipping fir, white pine). Although trees may come in different shapes and days between laying eggs. Many hens stop laying eggs all together colours, the value of a tree is based solely on its height (the until the spring arrives because winter is a bad time to raise chicks shape can be altered through pruning while colour can be given that cold weather decreases a chick's chance of survival. adjusted through dyes). RN is planning to purchase cattle next year, and offer dairy A Christmas tree is priced similar to any commodity that trades products as well (milk cheese, etc.). No expenses have been in a market. The market price of a Christmas tree is determined incurred in this regard for the current year
