Practice Exercise 9-3 At December 31, 2017, Kingbird, Inc., a manufacturer, has outstanding noncancelable purchase commitments for 55,500 pounds of raw material to be used in its manufacturing process. The purchase commitments require Kingbird, Inc. to pay $12 per pound for the raw material. The company prices its raw material inventory at cost or market, whichever is lower. Assuming that the market price as of December 31, 2017, is $9.50, record the journal entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Dec. 31 SHOW LIST OF ACCOUNTS Give the entry in January 2018, when the 55,500-pound shipment is received, assuming that the situation given in (a) above existed at December 31, 2017, and that the market price in January 2018 was $9.50 per pound. Also assume that Kingbird uses a perpetual inventory system. Prepare the journal entry for when the materials are received in January 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 2018