In November 2018, the Brunswick Company signed two purchase commitments. The first commitment requires Brunswick to purchase 18,000 units of inventory at $15 per unit by December 15, 2018. The second commitment requires the company to purchase 28,000 units of inventory at $16 per unit by March 15, 2019. Brunswick's fiscal year-end is December 31. The company uses a periodic inventory system. Both contracts were exercised on their expiration date.

Required:

1.Prepare the journal entry to record the December 15 purchase for cash assuming the following alternative unit market prices on that date:

1. $15.50
2. $14.50

-Record the purchase for cash of 18,000 units when the market price is $15.50 per unit.

-Record the purchase for cash of 18,000 units when the market price is $14.50 per unit.

2.Prepare any necessary adjusting entry at December 31, 2018, for the second purchase commitment assuming the following alternative unit market prices on that date:

1. $17.50
2. $15.30

-Record any necessary adjusting entry related to the second purchase commitment assuming the market price is $17.50 per unit.

-Record any necessary adjusting entry related to the second purchase commitment assuming the market price is $15.30 per unit.

3.Assuming that the unit market price on December 31, 2018, was $15.30, prepare the journal entry to record the purchase on March 15, 2019, assuming the following alternative unit market prices on that date:

1. $16.50
2. $15.00

-Record the purchase for cash of 28,000 units when the market price is $16.50 per unit.

-Record the purchase for cash of 28,000 units when the market price is $15.00 per unit.