At December 31, 2020, Cullumber Company has outstanding noncancelable purchase commitments for 36,500 gallons, at $3.84...
At December 31, 2020, Cullumber Company has outstanding noncancelable purchase commitments for 36,500 gallons, at $3.84 per gallon, of raw material to be used in its manufacturing process. The company prices its raw material inventory at cost or market, whichever is lower. (b2) Assuming that the market price as of December 31, 2020, is $3.46, record the journal entry.
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At December 31, 2020, Cullumber Company has outstanding
noncancelable purchase commitments for 36,500 gallons, at $3.84...
At December 31, 2020, Nash Company has outstanding noncancelable purchase commitments for 38,500 gallons, at $4.38...
At December 31, 2020, Nash Company has outstanding noncancelable purchase commitments for 38,500 gallons, at $4.38 per gallon, of raw material to be used in its manufacturing process. The company prices its raw material inventory at cost or market, whichever is lower. Assuming that the market price as of December 31, 2020, is $3.94, record the journal entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry"...
E9.12 (LO 3 ) (Purchase Commitments) At December 31, 2020, Indigo Girls Company has outstanding noncancelable...
E9.12 (LO 3 ) (Purchase Commitments) At December 31, 2020, Indigo Girls Company has outstanding noncancelable purchase commitments for 36,000 gallons, at $3.00 per gallon, of raw material to be used in its manufacturing process. The company prices its raw material inventory at cost or market, whichever is lower. Instructions a. Assuming that the market price as of December 31, 2020, is $3.30, how would this matter be treated in the accounts and statements? Explain. b. Assuming that the market...
Question 10 At December 31, 2020, Windsor Co. has outstanding purchase commitments for 122,000 gallons, at...
Question 10 At December 31, 2020, Windsor Co. has outstanding purchase commitments for 122,000 gallons, at $5.50 per gallon, of a raw material to be used in its manufacturing process. The company prices its raw material inventory at cost or market, whichever is lower. Assuming that the market price as of December 31, 2020, is $5.20, how would you treat this situation in the accounts? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If...
*Exercise 9-12 b2-c2 (Part Level Submission) At December 31, 2020, Pharoah Company has outstanding noncancelable purchase...
*Exercise 9-12 b2-c2 (Part Level Submission) At December 31, 2020, Pharoah Company has outstanding noncancelable purchase commitments for 38,400 gallons, at $3.60 per gallon, of raw material to be used in its manufacturing process. The company prices its raw material inventory at cost or market, whichever is lower. *(62) Your answer is correct Assuming that the market price as of December 31, 2020, is $3.24, record the journal entry. (Credit account titles are automatically indented when amount is entered. Do...
Problem 9-18 Purchase commitments (Appendix] In November 2018, the Brunswick Company signed two purchase commitments. T...
Problem 9-18 Purchase commitments (Appendix] In November 2018, the Brunswick Company signed two purchase commitments. The first commitment requires Brunswick to purchase 17,000 units of inventory at $14 per unit by December 15, 2018. The second commitment requires the company to purchase 27,000 units of inventory at $15 per unit by March 15, 2019. Brunswick's fiscal year-end is December 31. The company uses a periodic inventory system. Both contracts were exercised on their expiration date. Required: 1. Prepare the journal...
In November 2018, the Brunswick Company signed two purchase commitments. The first commitment requires Brunswick to purc...
In November 2018, the Brunswick Company signed two purchase commitments. The first commitment requires Brunswick to purchase 25,000 units of inventory at $9 per unit by December 15, 2018. The second commitment requires the company to purchase 35,000 units of inventory at $10 per unit by March 15, 2019. Brunswick’s fiscal year-end is December 31. The company uses a periodic inventory system. Both contracts were exercised on their expiration date. Required: 1. Prepare the journal entry to record the December...
Flounder Company has been having difficulty obtaining key raw materials for its manufacturing process. The company...
Flounder Company has been having difficulty obtaining key raw
materials for its manufacturing process. The company therefore
signed a long-term noncancelable purchase commitment with its
largest supplier of this raw material on November 30, 2020, at an
agreed price of $430,400. At December 31, 2020, the raw material
had declined in price to $394,050.
What entry would you make on December 31, 2020, to recognize these
facts? (Credit account titles are automatically
indented when amount is entered. Do not indent...
Windsor Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials...
Windsor Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2021 at a cost of $981,000. At December 31, 2021, the raw materials to be purchased have a market value of $932,500. Prepare any necessary December 31, 2021 entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Account Titles...
Brief Exercise 9-08 Sunland Company signed a long-term noncancelable purchase commitment with a major supplier to...
Brief Exercise 9-08 Sunland Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2021 at a cost of $919,600. At December 31, 2020, the raw materials to be purchased have a market value of $869,100. In 2021, Sunland paid $919,600 to obtain the raw materials which were worth $869,100. Prepare the entry to record the purchase. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry...
Cullumber Company has the following balances in selected accounts on December 31, 2020. Accounts Receivable $...
Cullumber Company has the following balances in selected accounts on December 31, 2020. Accounts Receivable $ 0 Accumulated Depreciation—Equipment 0 Equipment 8,000 Interest Payable 0 Notes Payable 10,000 Prepaid Insurance 3,960 Salaries and Wages Payable 0 Supplies 2,200 Unearned Service Revenue 28,000 All the accounts have normal balances. The information below has been gathered at December 31, 2020. 1. Cullumber Company borrowed $11,400 by signing a 9%, one-year note on September 1, 2020. 2. A count of supplies on December...
At December 31, 2020, Nash Company has outstanding noncancelable purchase commitments for 38,500 gallons, at $4.38 per gallon, of raw material to be used in its manufacturing process. The company prices its raw material inventory at cost or market, whichever is lower. Assuming that the market price as of December 31, 2020, is $3.94, record the journal entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry"...
Question 10 At December 31, 2020, Windsor Co. has outstanding purchase commitments for 122,000 gallons, at $5.50 per gallon, of a raw material to be used in its manufacturing process. The company prices its raw material inventory at cost or market, whichever is lower. Assuming that the market price as of December 31, 2020, is $5.20, how would you treat this situation in the accounts? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If...
*Exercise 9-12 b2-c2 (Part Level Submission) At December 31, 2020, Pharoah Company has outstanding noncancelable purchase commitments for 38,400 gallons, at $3.60 per gallon, of raw material to be used in its manufacturing process. The company prices its raw material inventory at cost or market, whichever is lower. *(62) Your answer is correct Assuming that the market price as of December 31, 2020, is $3.24, record the journal entry. (Credit account titles are automatically indented when amount is entered. Do...
Problem 9-18 Purchase commitments (Appendix] In November 2018, the Brunswick Company signed two purchase commitments. The first commitment requires Brunswick to purchase 17,000 units of inventory at $14 per unit by December 15, 2018. The second commitment requires the company to purchase 27,000 units of inventory at $15 per unit by March 15, 2019. Brunswick's fiscal year-end is December 31. The company uses a periodic inventory system. Both contracts were exercised on their expiration date. Required: 1. Prepare the journal...
Flounder Company has been having difficulty obtaining key raw
materials for its manufacturing process. The company therefore
signed a long-term noncancelable purchase commitment with its
largest supplier of this raw material on November 30, 2020, at an
agreed price of $430,400. At December 31, 2020, the raw material
had declined in price to $394,050.
What entry would you make on December 31, 2020, to recognize these
facts? (Credit account titles are automatically
indented when amount is entered. Do not indent...
Windsor Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2021 at a cost of $981,000. At December 31, 2021, the raw materials to be purchased have a market value of $932,500. Prepare any necessary December 31, 2021 entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Account Titles...
Brief Exercise 9-08 Sunland Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2021 at a cost of $919,600. At December 31, 2020, the raw materials to be purchased have a market value of $869,100. In 2021, Sunland paid $919,600 to obtain the raw materials which were worth $869,100. Prepare the entry to record the purchase. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry...
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