The British subsidiary of a U.S. company reported cost of goods sold of 75,000 pounds (sterling) for the current year ended December 31. The beginning inventory was 10,000 pounds, and the ending inventory was 15,000 pounds. Spot rates for various dates are as follows: Date beginning inventory was acquired$1.60=1 pound Rate at beginning of the year$1.58=1 pound Weighted average rate for the year$1.50=1 pound Date ending inventory was acquired$1.45=1 pound Assuming the dollar is the functional currency of the British subsidiary, the remeasured amount of cost of goods sold that should appear in the consolidated income statement is:
A. $114,250.
B. $108,750.
C. $112,500.
D. $125,700.
Answer: A
You might also like to view...
Changing the Hours Worked field in an otherwise legitimate payroll transaction to increase the amount of the paycheck is an example of data collection fraud
Indicate whether the statement is true or false
Luke Price, a manager in an automobile factory, wanted his subordinates to rate their satisfaction about the new pistons that arrived last month. He asked them to rate the product based on strength and ease of handling
Which of the following is evident here? A) order-routine specifications B) supplier selection C) performance review D) general needs description E) proposal solicitation
What is good-value pricing?
What will be an ideal response?
When writing goodwill messages, you should always use the "you" perspective
Indicate whether the statement is true or false