Seri Minyak Bhd uses crude palm oil in producing its products. The company expected to use 200 tonnes of crude palm oil in July 2023 to meet the demand in the festival season. If the price of raw materials increases, the company's profit margin decreases. The company entered a futures crude oil contract on January 1, 2023, to hedge the cash flow due to the increases in the price of crude oil in July 2023. The contract gives the company a right and obligation to purchase crude palm oil at RM2,500 per tonne. The contract expired on August 31, 2023. Transactions related to the futures contract are as follows: Jan 1 Feb 28 May 30 July 5 Oct 30 Required: a) Signed the futures contract with no premium payment. The price of the crude palm oil was RM2,500 per tonne. The price of the crude palm oil was RM2,700 per tonne. The price of the crude palm oil was RM2,900 per tonne. Paid a total contract price of RM2,500 per tonne to purchase 200 tonnes of crude palm oil. Sold palm oil for RM2,500,000. The cost of goods sold was RM1,500,000 from the inventory purchased on July 5. Prepare the journal entries related to Seri Minyak Bhd's futures contract using the above information. b) Prepare the income statement (partial) for the year ended December 31, 2023. Explain why the company entered the futures contract related to its raw materials.