UK Accounting for livestock and poultry farming

[met859]

Dear Forum Users.
Its my first thread here. I am having a bit of an ambiguity. We were solving an example with a few colleagues.

AHMED runs an egg laying and selling business. After operating for 8 successful months without any loss or addition to the hens, Ahmed decides to buy an incubator. Next 4 months Ahmed produces 1300 chicks with 80 failed eggs. He kept 100 chicks for his own stock and sells 1200 chicks in market for £1.20 each. His market price for eggs is 0.20 pence each.

How should he account fot the chicks he kept for growing into hens himself?
Add them in assets at 20pence i.e. price of his eggs to market?
Or at 1.20 i.e price of his chicks to market.
Also how would appreciation workout when they grow into hens?

 

[kirby]

I hope this is not a homework question disguised as a real chicken question. That would be fowl.

 

[Fidget]

Eggsactly!!

 

[met859]

Guys its not homework question I am well beyond that now plus how it is justified for professionals to ask questions who are charging someone for their time and assistance and students not to ask it for their knowledge and understanding. Peer to peer knowledge sharing has reached much farther than thinking who or why someone is asking something and focuses more on information sharing.

 

[kirby]

If Ahmed does not know how to account for the chicks, he should just WING IT.