Brenalyn Co. entered into a purchase agreement on March 31,2021, to purchase raw materials. These materials are to be delivered on April 30,2022. The company did not actually put these materials into production until June 30,2022. The contract price and the market prices for these materials are shown below:

Contract price,3/31/2021                ₱1,200,000

Market price,12/31/2021                  1,000,000

Market price,04/30/2022                  1,400,000

Market price,6/30/2022                    1,600,000

 

Questions:

Based on the data, answer the following:

How much is to be recognized as loss on purchase commitment on December 31,2021?

Answer rating: 100% (QA)

To determine the amount to be recognized as loss on purcha... View the full answer