Corbin Company purchased 150,000 gallons of home heating fuel at a cost of $2.25 per gallon. Corbin delivered 95,000 gallons in 2014. The average delivery price was $3.49, delivery cost amounted to $.25 per gallon. Corbin recognizes revenue at the time of the delivery.
Required:
1) Prepare summary journal entries for 2014.
2) What amount is in inventory at the end of 2014?

Question

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The Answer of Corbin Company purchased 150,000 gallons of home heating fuel at a cost of $2.25 per gallon. Corbin delivered 95,000 gallons in 2014. The average delivery price was $3.49, delivery cost amounted to $.25 per gallon. Corbin recognizes revenue at the time of the delivery.
Required:
1) Prepare summary journal entries for 2014.
2) What amount is in inventory at the end of 2014?

Corbin Company Purchased 150,000 Gallons of Home Heating Fuel at a Cost