Second question: The typical work flow to grow a tree goes like this:
Seedlings + styrofoam block pot + 1 year = super seedling. I sell these for $4 each. Any unsold by early August ...
Superseedling + 6 liter pot + dirt + 1-3 years = small tree. I sell these for $12 each. Any unsold by early August ...
Small tree + 20 liter pot + dirt + 2-3 years = medium tree. I sell these for $35 each.
Now when a seedling goes into a styropot it decreases in value: It's roots haven't filled up the pot, so it's difficult to transplant, A fraction die from transplant shock. Similarly a superseedling immediately after transplanting is undersized for it's pot, and so has a lower value. Normally I consider these 'not big enough for the pot' trees to be unsaleable.
So a given tree as a seedling is worth 50 cents. Intially in a styroblock it has value 0. A year later it has value $4. It's transplanted to a 6 liter pot. It again has either no value, or it disappears from my inventory for a couple years. Then for a while it's worth $12.
What is the best way to handle this in terms of the accounting?
I'm new to accounting. Assume lots of ignorance on my part when you answer.