More than 60 billion sets of chopsticks are produced every year in China, so you’d have thought they would be making enough. But a chopstick shortage is growing in the Far East, prompting a U.S. company in Georgia to start exporting millions to the country. Georgia Chopsticks is producing an incredible two million sets of the utensils every day, reported the Daily Telegraph.
1. What type of woods is the company using to make the chopsticks?
2. Assume that the company owns its own land with these trees on it and harvests the raw materials for the chopsticks. Explain how should the company should record the land and account for the trees in its accounting records.
3. If Georgia Chopsticks currently produces 2 million sets of chopsticks a day and wants to export 10 million pairs a day by the end of the year, what percent increase is that in their production?
Duell, M. (2011). U.S. exporting millions of chopsticks to China as wood shortage grows in Far East, Mail online, August 4 (Retrievable online at http://www.dailymail.co.uk/news/article-2022211/US-exports-chopsticks-China-Georgia-producing-utensils-wood-shortage-grows.html)
Yahoo video, Georgia Company Exports Chopsticks to China (Retrievable online at http://news.yahoo.com/video/us-15749625/georgia-company-exports-chopsticks-to-china-25959962.html)