Case Discussion 1
In the Sales/Delivery Method, the revenue is recognized when the grain is purchased and received by the grain elevator. Thus, the sales revenue was calculated by multiplying 180,000 bushels by an average price of $2.90/bushels. The cost of Sales was calculated by multiplying these 180,000 bushels by total production cost per bushels of $ 0.531. In the balance sheet, inventory is made up of 30,000 bushels stored at the farm at a current price of $3.07. The Accounts Receivable balance includes the 20,000 bushels awaiting collection at a price of $2.90 per bushel.

Case Discussion 2
Under the Collection Method, the revenue is recorded when the cash is actually received by the grain elevator. Therefore, the sales revenue was calculated by multiplying 160,000 bushels by an average price of $2.90/bushels. The cost of Sales was calculated by multiplying these 160,000 bushels by total production cost per bushels of $ 0.531. In the balance sheet, inventory is made up of 50,000 bushels stored at the farm at a current price of $3.07. Accounts Receivable is zero under this method.

Case Discussion 3
For the Production Method, Revenue is measured as soon as the crops have been harvested, the sales revenue was calculated by multiplying 2100,000 bushels by an average price of $2.90/bushels. The cost of Sales was calculated by multiplying these 210,000 bushels by total production cost per bushels of $ 0.531. In the balance sheet, Accounts Receivable balance includes 20,000 bushels at a price of $ 2.90. No inventory is recognized under this