Question: E 1-10 - Accounting for purchase commitments on Nov. 15, 2020, Malone Corp. entered into a commitment to purChase 200,000 units of raw material X

E 1-10 - Accounting for purchase commitments on Nov. 15, 2020, Malone Corp. entered into a commitment to purChase 200,000 units of raw material X for P40 per unit to be delivered on Mar. 15, 2021. The contract cannot be cancelled. Malone entered into this purchase commitment to protect itself against the volatility in the price of raw material x. By Dec. 31, 2020, the purchase price of material x had fallen to P35 per unit. Required: Using periodic inventory system, prepare the journal entry on: 1. Nov. 15, 2020 2. Dec. 31, 2020 3. Mar. 15, 2021 if the price of the material had fallen further to P32 per unit 4. Mar. 15, 2021 if the price of the material had risen to P42 per unit

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

E 2-10 - Accounting for purchase commitments On Nov. 15, 2020, Malone Corp. entered into a commitment to purchase 200,000 units of raw material X for P40 per unit to be delivered on Mar. 15, 2021....

I did the first half of this, can I recieve help with the second half of this? This is the beginning of the first part that was not provided. I'm providing it now. INPUT SECTION SALES 4th Quarter...

MASTER BUDGET PROJECT i really need help completing this a Master Budget Project 2021 Insert Draw Page Layout Formulas Data Review View Tell me Share X 12 mno Tea - A A BU OY E B Merge Center $ % 3...

Master Budget Project a Master Budget Project 2021 Insert Draw Page Layout Formulas Data Review View Tell me Share X 12 mno Tea - A A BU OY E B Merge Center $ % 3 Conditional Format Formatting a Tale...

Please Help! the master budget is complete I need help with the budgeted balance sheet. all information to complete is provided. Please include the formula used to complete the balance sheet! B D E...

Using the PDF File, the Excel sheet needs to be completed. Master Budget Modeling Project for MyArmor, Inc. - 2017 Planning Year Project is Activated Save your project by following these directions -...

Please Help! I need help completing the Budgeted Income Statement, Schedule of Expected Collections, Schedule of Expected Payments for Direct Materials, Cash Budget and Budgeted Balance Sheet of the...

An Investment Analysis Case Study This case is a group project that is due on April 1, before class at 10.30. Stating the obvious: Each group will turn in one report (sounds obvious, but might as...

1. Draw and calculate the current I and the conductance G if there is a resistance R=5 k and the total voltage V=130V. 2. Find the total resistance, total current, total power, and current at 10...

What is the OOPs in Java ?

17. The areas of two similar triangles are 54 cm2 and 96 cm2. Given that the perimeter of the smaller OPEN triangle is (x + 1) cm, find the sum of the perimeters of the two triangles in terms of x....

Determine the major differences between U.S. GAAP and IFRS disclosure reporting requirements related to each separately reportable operating segment. Next, give your opinion as to whether either U.S....