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On December 1 , 2 0 2 3 , Fancy Foods forecasts that it will need 1 0 0 , 0 0 0 bushels of
On December Fancy Foods forecasts that it will need bushels of oats in days to manufacture its products. To lock in the purchase price of the oats, it purchases bushels of oats for delivery in days at $ per bushel. The long futures position qualifies as a cash flow hedge of the forecasted purchase of oats and is considered highly effective. No margin deposit is required. On December the day futures price is $ per bushel and the spot price is $ per bushel. On January Fancy Foods closes its futures position and purchases the oats on the spot market for $ per bushel. Products containing the oats are sold on March Fancy Foods is a calendaryear company.
At what value is the inventory reported on January
Select one:
a $
b $
c $
d $
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