Question
Wells and Family Ltd operates a duck farm on the outskirts of Melbourne. At the commencement of the 2021/22 financial year the following ducks were
Wells and Family Ltd operates a duck farm on the outskirts of Melbourne. At the commencement of the 2021/22 financial year the following ducks were owned: Mature ducks with a fair value of: $55,000 One month old ducklings with a fair value of $4,000 The following events occurred during the course of the 2021/22 financial year: $10,000 was spent on food and water for the ducks; All of the mature ducks were harvested (humanely) on 1 March 2022. At the point of harvest the fair value of the harvested ducks was $142,000. The cost to harvest the ducks was $6,000 and the estimated selling costs was zero. Half of the duck meat was sold to customers on 4 March 2022 for $94,000. The other half of the duck meat was processed into duck burgers on 10 March at a cost of $9,000. All the burgers were sold to customers on 15 March 2022 for $170.000 On 30 June 2022 the frm purchased 100 one month old ducklings for $7.000. At the end of the 2022 fnancial year the ducklings owned at the start of the financial year had matured and had an estimated fair value of $85,000. Required Provide all necessary entries to record the above events during the 2021/22 financial year
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