Fair Value Hedge: Short in commodity Futures American Italian Pasta Company IP manufactures several varieties of pasta. On january 1, 2020. AIPC had commodity leone carried at action cost of $1.000.000. These commodo could be so or manufactured in a pantalater in the year. To hed a t poble declines in the value of its commodities inventory on January 6 AIPC commodity tres in the company to deliver the commodities in February for $1,100,000. The futures exchange requires a $20,000 margin deposit On February 19, the futures price increased to 1,150,000 and the company dosed out its futures contract, Spots con t oh and APC sold intory for $1.175.000 in cash on March 2 a. Prepare the journal s related to APC Butres contract and of commoties wventory. Assume a perpetual entory system that spot and futures position qualities for hedge account All income effects for the inventories and related hedges are reported in cost of goods sold by how much would Aros proft herease of the hedge was not undertakent