On November 15, 2021, Marsyl Company entered into a commitment to purchase 100,000 barrels of aviation fuel for P55 per barrel on March 31, 2022. The company entered into this purchase commitment to protect itself against the volatility in the aviation fuel market. By December 31, 2021, the purchase price of aviation fuel had fallen to P50 per barrel. However, by March 31, 2022, when the company took delivery of the 100,000 barrels, the price of the aviation fuel had risen to P58 per barrel. How much should be recognized as gain on purchase commitment for the year 2021? The following information has been extracted from the records of Marie Company about one of its products: Units Unit Cost Total Cost Jan. 1 Beg. balance 10,000 150 P1,500,000 Jan. 5 Purchase 10,000 180 1,800,000 Jan. 15 Sale 15,000 Jan. 16 Sales return 1,000 Jan. 25 Purchase 4,000 200 800,000 Jan. 26 Purchase return 500 200 100,000
On November 15, 2021, Marsyl Company entered into a commitment to purchase 100,000 barrels of
aviation fuel for P55 per barrel on March 31, 2022. The company entered into this purchase
commitment to protect itself against the volatility in the aviation fuel market. By December 31, 2021,
the purchase price of aviation fuel had fallen to P50 per barrel. However, by March 31, 2022, when
the company took delivery of the 100,000 barrels, the price of the aviation fuel had risen to P58 per
barrel. How much should be recognized as gain on purchase commitment for the year 2021?
The following information has been extracted from the records of Marie Company about one of its
products:
Units Unit Cost Total Cost
Jan. 1 Beg. balance 10,000 150 P1,500,000
Jan. 5 Purchase 10,000 180 1,800,000
Jan. 15 Sale 15,000
Jan. 16 Sales return 1,000
Jan. 25 Purchase 4,000 200 800,000
Jan. 26 Purchase return 500 200 100,000
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