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Greeley [361]
3 years ago
5

At the end of the fiscal year, Kappa Pet Co. has an outstanding purchase commitment for the purchase of 1 million gallons of jet

fuel at a price of $18.40 per gallon for delivery during the coming summer. The company prices its inventory at the lower of cost or market. If the market price for jet fuel at the end of the year is $17.00, how would this situation be reflected in the annual financial statements
Business
1 answer:
Pani-rosa [81]3 years ago
6 0

Answer:

-

Explanation:

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Answer:

average annual transportation inventory for each alternative are 16.4383 , 5.4794,  27.3972

Explanation:

Given data

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to find out

What is the average annual transportation inventory for each alternative

solution

we will apply here  average annual transportation inventory formula that is

average annual transportation inventory = t × A / 365

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and

average annual transportation inventory = t × A / 365

average annual transportation inventory = 5 × 2000/ 365 = 27.3972

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