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Question - Basil, the British subsidiary of a US Company reported COGS in British pounds for the current year ending December 31. The beginning inventory was 17,300 pounds, and the ending inventory was 12,100 pounds.
Purchases of 23,600 were made evenly throughout the year spot rates for various dates are as follows:
Date the beginning inventory was acquired 1 (bp) = $1.11
Start of year rate 1 (bp) = $1.09
Average rate 1 (bp) = $1.14
Ending inventory 1 (bp) = $1.18
Assume that the pound is the functional currency of the British subididary
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