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Question: At December 31, 2017, Kingbird 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, 2017, is $3.9 record the journal entry.
Give the entry in January 2018, when the 38, 500-gallon shipment is received, assuming that the situation given in (b2) above existed at December 31, 2017, and that the market price in January 2018 was $3.94 per gallon. Prepare the journal entry for when the materials are received in January 2018.
Cedalion Corporation had 360,000 shares of common stock outstanding at January 1, 2017. Compute the basic earnings per share for year 2017
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