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St. Philip Company ordered parts costing 250,000 from a foreign supplier on January 15 when...

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Accounting

St. Philip Company ordered parts costing 250,000 from a foreign supplier on January 15 when the spot rate was $0.28 per . A one-month forward contract was signed on that date to purchase 250,000 at a forward rate of $0.30. The forward contract is properly designated as a fair value hedge of the 250,000 firm commitment. On February 15, when the company receives the parts, the spot rate is $0.29. At what amount should St. Philip Company carry the parts inventory on its books? Multiple Choice $75,000 $70,000 $71,500 $72,500

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