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Dub Dairy Produces Milk to Sell to Local and National

Question 68

Multiple Choice

Dub Dairy produces milk to sell to local and national ice cream producers.Dub Dairy began operations on January 1, 2011 by purchasing 840 milk cows for $1,176,000.The company controller had the following information available at year end relating to the cows: Dub Dairy produces milk to sell to local and national ice cream producers.Dub Dairy began operations on January 1, 2011 by purchasing 840 milk cows for $1,176,000.The company controller had the following information available at year end relating to the cows: On Dub Dairy's income statement for the year ending December 31, 2011, what amount of unrealized gain on harvested milk will be reported? A) No gain is reported until the milk is sold. B) $12,000 C) $54,000 D) $311,000 On Dub Dairy's income statement for the year ending December 31, 2011, what amount of unrealized gain on harvested milk will be reported?


A) No gain is reported until the milk is sold.
B) $12,000
C) $54,000
D) $311,000

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