On December 31, 2020, Naysayer Company has outstanding nurchase commitments for 10,000 gallons at P200 per gallon of raw material to be used in the manufacturing process. Required: Prepare journal entry under each of the following independent assumptions: a. The market price on December 31, 2020 is P210. b. It is expected that the market price will decline to P170 in early January 2021. C. The market price on December 31, 2020 is P170. d. The market price on December 31, 2020 is P170. On January 31, 2021 when the 10,000 gallon shipment is received, the market price is P150. e. The market price on December 31, 2020 is P170. On January 31, 2021 when the 10,000 gallon shipment is ulrot price is P210.
On December 31, 2020, Naysayer Company has outstanding nurchase commitments for 10,000 gallons at P200 per gallon of raw material to be used in the manufacturing process. Required: Prepare journal entry under each of the following independent assumptions: a. The market price on December 31, 2020 is P210. b. It is expected that the market price will decline to P170 in early January 2021. C. The market price on December 31, 2020 is P170. d. The market price on December 31, 2020 is P170. On January 31, 2021 when the 10,000 gallon shipment is received, the market price is P150. e. The market price on December 31, 2020 is P170. On January 31, 2021 when the 10,000 gallon shipment is ulrot price is P210.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 8E
Related questions
Question
Problem 12-2
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT