After working for an accounting firm for several years, you end up joining a manufacturer of electronic components that go into a variety of consumer products. Because the electronic components require specialized raw materials, including rare earth metals, the firm places noncancelable orders with its primary suppliers up to two years ahead of time at a set price and amount. However, due to turmoil in the world economy, the price of these metals has suddenly fluctuated dramatically. You are concerned you may need to account for this situation. Determine the appropriate accounting for all possible circumstances, citing ASC where appropriate.

You may use all available resources to complete this case – e.g., lecture slides, notes, your book, and the Accounting Standards Codification.

PLEASE, Determine the appropriate accounting for all possible circumstances. DONT need to cite ASC.