Solution-At what amount should the foreign subsidiary sold

At what amount should the foreign subsidiary sold

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Reference no: EM133065771

Question - A U.S. company's foreign Subsidiary had these amounts in local currency units (LCU) in 2020:

Cost of goods sold LCU 5,540,000

Beginning inventory 548,000

Ending inventory 628,000

The average exchange rate during 2020 was $1.70 = LCU 1. The beginning inventory was acquired when the exchange rate was $1.50 - LCU 1. Ending inventory was acquired when the exchange rate was $1.80 = LCU 1. The exchange rate at December 31, 2020, was $1.85 = LCU 1. Assuming that the foreign country is highly inflationary, at what amount should the foreign subsidiary's cost of goods sold be reflected in the U.S, dollar income statement?

Reference no: EM133065771

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At what amount should the foreign subsidiary sold

Reference no: EM133065771

Reference no: EM133065771

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