ABC has entered into a non-cancellable purchase contract which the company to purchase 5,000 sacks of copra from seller at P650 per sack middle of 20x1. By the end of 20x1, the price of copra per sack increases to P670 and by the end of the first quarter of 20x2, it rolls back to 630 a sack when ABC made the actual purchase triggered from the continuing decline since 20x2 commenced. At the time of the actual purchase, how much shall the inventory be recorded at?
ABC has entered into a non-cancellable purchase contract which the company to purchase 5,000 sacks of copra from seller at P650 per sack middle of 20x1. By the end of 20x1, the price of copra per sack increases to P670 and by the end of the first quarter of 20x2, it rolls back to 630 a sack when ABC made the actual purchase triggered from the continuing decline since 20x2 commenced. At the time of the actual purchase, how much shall the inventory be recorded at?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC has entered into a non-cancellable purchase contract which the company to purchase 5,000 sacks of copra from seller at P650 per sack middle of 20x1. By the end of 20x1, the price of copra per sack increases to P670 and by the end of the first quarter of 20x2, it rolls back to 630 a sack when ABC made the actual purchase triggered from the continuing decline since 20x2 commenced. At the time of the actual purchase, how much shall the inventory be recorded at?
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