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Question - Precious (Philippine company) acquired 90 percent ownership of Estrella (foreign company). The beginning inventory at the acquisition date was 530,000 FC (foreign curencies). During the year Estrella purchased 2,300,000 FCs of inventory and ending inventory amounted to 600,000 FCs. The ending inventory was acquired during the fourth quarter of the year. The acquisition date, average for the year, fourth quarter average, and end of year exchange rates were P.74, P.75, P.71 and P.73, respectively.
Assuming inventory records are maintained on a First-in, First-out basis, what is the converted Cost of Goods Sold if the tempóral method is applied.
a. P1,672,500
b. P1,505,250
c. P1,522,080
d. P1,691,200
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