During 2020, Leni Robredo entered in a non-cancellable commitment to purchase 320,000 units of inventory at fixed price of P5 per unit, delivery to be made in 2022. On December 31, 2020 and 2021, the purchase price of this inventory item had fallen to P4.40 and raised to P4.6 per unit. The goods covered by the purchase contract were delivered on January 28, 2022. What is the estimated

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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During 2020, Leni Robredo entered in a non-cancellable commitment to purchase 320,000 units of inventory at fixed price of P5 per unit, delivery to be made in 2022. On December 31, 2020 and 2021, the purchase price of this inventory item had fallen to P4.40 and raised to P4.6 per unit. The goods covered by the purchase contract were delivered on January 28, 2022. What is the estimated liability expense on purchase inventory on December 31, 2021?

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