Solution-What amount would have been reported for cost of

What amount would have been reported for cost of goods sold

Reference no: EM131791998

Problem - A subsidiary of Porter Inc., a U.S. company, was located in a foreign country. The functional currency of this subsidiary was the stickle (§), the local currency where the subsidiary is located. The subsidiary acquired inventory on credit on November 1, 2010, for §120,000 that was sold on January 17, 2011 for §156,000. The subsidiary paid for the inventory on January 31, 2011. Currency exchange rates between the dollar and the stickle were as follows:

November 1, 2010 $.19 = 1 stickle

December 31, 2010 $.20 = 1 stickle

January 1, 2011 $.22 = 1 stickle

January 31, 2011 $.23 = 1 stickle

Average for 2011 $.24 = 1 stickle

What amount would have been reported for this inventory in Porter's consolidated balance sheet at December 31, 2010?

a. $22,800

b. $24,000

c. $26,400

d. $28,800

What amount would have been reported for cost of goods sold on Porter's consolidated income statement at December 31, 2011?

a. $22,800

b. $24,000

c. $26,400

d. $28,800

Reference no: EM131791998

Questions Cloud

Create journal entry to record the purchase of kaltop stock : Cale used the equity method to account for the investment. Create a journal entry to record the purchase of Kaltop's stock on January 1, 2003

What was tredegar dividend payout ratio : Tredegar Industries Inc. makes plastic films and molded plastic products and soft alloy aluminum extrusions, distributes business applications software.

What is reorder level if lead time is constant at four weeks : What is the reorder level if lead time is constant at four weeks? What is the effect of adding some margin of safety and raising the reorder level by ten units?

Compare the company profit performance : Central Sprinkler Corporation manufactures and sells automatic fire sprinkler heads and valves, and it distributes components for automatic sprinkler systems.

What amount would have been reported for cost of goods sold : What amount would have been reported for cost of goods sold on Porter's consolidated income statement at December 31, 2011

What order size will give variable cost : What order size will give a variable cost within 10 per cent of optimal? What is the cost if suppliers only make deliveries of 200 units?

What would be immediate cash outflow required for project : The Finney Company is reviewing the possibility of remodeling one of its showrooms. What would be the immediate cash outflow required for this project.

What is noncontrolling interest share of shannon net income : Chain decided to use the equity method to account for the investment. What is the noncontrolling interest's share of Shannon's net income for 2010

How many minutes of grinding machine time would be required : Broze Company makes four products in a single facility. How many minutes of grinding machine time would be required to satisfy demand for all four products?

User Account

All Pages

What amount would have been reported for cost of goods sold

Reference no: EM131791998

Reference no: EM131791998

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT