User Account

All Pages

How much is the loss on purchase commitment

Assignment Help Accounting Basics
Reference no: EM132742147

Question: On December 31, 2019, Merciful Company has outstanding purchases commitments for 100,000 gallons at P20 per gallon of raw material to be used in its manufacturing process. The company prices its raw materials inventory at cost or market whichever is lower.

It is determined that the market price of the raw material has declined to P17 per gallon on December 31, 2019 and it is expected to decline further to P15 in the first quarter of 2020.

How much is the loss on purchase commitment that should be recognized in 2019?

Reference no: EM132742147

Questions Cloud

What is the Par value for the preferred stock : Contributed capital: Preferred stock, 8%, 100,000 shares authorized, 50,000 shares issued $2,500,000. What is the Par value for the preferred stock
Should the old issue be refunded with new debt : Should the old issue be refunded with new debt? The Wagner Corporation has a $29 million bond obligation outstanding, which it is considering refunding.
What is the amount of gross margin : The inventory records for Radford Co. reflected the following: Sales @ May 313300 units @ $5.50. What is the amount of gross margin
Prepare the journal entry to close factory overhead : The Canterbury Company estimates that the factory overhead, Prepare the journal entry to close factory overhead into Cost of Goods Sold
How much is the loss on purchase commitment : On December 31, 2019, Merciful Company has outstanding purchases commitments for 100,000 gallons at P20 per gallon of raw material to be used.
What is the eoq for electric motor : A distributor of electric motors experiences an annual demand of 10,000 motors which cost $30 per motor. She orders the motors in a batch ordering process
Prepare journal entries to record the transactions : Antonio made an additional investment of cash in amount of $10,500. Prepare journal entries to record the transactions
How to prepare a cash budget for the quarter : Golden State Company has applied at a local bank for a short-term loan of $150,000 starting on October 1, 2019. The bank's loan officer has requested.
How relevant is forecasting in the business operations : How relevant is forecasting in the business operations. Explain comprehensively

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd