ll 3856000. The contract Punchase entry in 2021, Sonic Inc. entered into a purchase contract (not subject to revision or cancellation) to purchase Exercise 10-51 20,000 units of inventory at $7 per unit (to be used in manufacturing). The contract period ex- Accounting tor tends through February 2021, and Sonic applies a perpetual inventory system and the FIFO in- wth Purchun ventory method. Dec. Jan. .2020 At Sonic's December 31 year end, inventory was being sold at a price of $5 per unit. 5,2021 Sonic purchased the 20,000 units contracted; however, the selling price per unit of i this date was $4.75. Required any necessary journal entries or disclosures on the following dates. Note: The selling prices above are et of selling costs. November 1, 2020 (initiation of contract). December 31, 2020 (reporting period). January 25, 2021 (purchase date)