Wildhorse Corporation, a manufacturer of ethnic foods, contracted in 2020 to purchase 570 pounds of a spice mixture at $2.85 per pound, delivery to be made in spring of 2021. By 12/31/20, the price per pound of the spice mixture had risen to $3.13 per pound. In 2020, Wildhorse should recognize O again of $159.60. O No gain or loss. • a loss of $159.60. O a loss of $1624.50.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Wildhorse Corporation, a manufacturer of ethnic foods, contracted in 2020 to purchase 570 pounds of a spice mixture at $2.85 per
pound, delivery to be made in spring of 2021. By 12/31/20, the price per pound of the spice mixture had risen to $3.13 per pound. In
2020, Wildhorse should recognize
O a gain of $159.60.
O No gain or loss.
a loss of $159.60.
O a loss of $1624.50.
Transcribed Image Text:Wildhorse Corporation, a manufacturer of ethnic foods, contracted in 2020 to purchase 570 pounds of a spice mixture at $2.85 per pound, delivery to be made in spring of 2021. By 12/31/20, the price per pound of the spice mixture had risen to $3.13 per pound. In 2020, Wildhorse should recognize O a gain of $159.60. O No gain or loss. a loss of $159.60. O a loss of $1624.50.
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