Margaret Ltd Has a Vineyard and at the End of Reporting

question 28

Multiple Choice

Margaret Ltd has a vineyard and at the end of reporting period 30 June 2012 the following information was available.

There was no material change in the condition of vineyard from last appraisal to 30 June 2012
In accordance with AASB 141 "Agriculture", what is the journal entry to recognise the harvest of grapes on 25 June 2012?

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Definitions:

Job-Order Costing

Job-order costing is an accounting method used to track costs and evaluate the profitability of individual jobs or batches.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products based on a selected activity base, such as machine-hours or labor-hours, calculated prior to the actual production.

Automated Lathe

A machine tool that performs precisely controlled, automatic machining operations without direct manual intervention.

Manufacturing Overhead

The indirect costs associated with manufacturing, such as utilities, maintenance, and factory management salaries, not directly tied to a specific product.