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  • A U S Company S Foreign Subsidiary Had These Amounts in Foreign

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    The U.S. company's foreign subsidiary recorded costs in foreign currency units (FCU) in 2013, including FCU 10 million for cost of goods sold and FCU 500,000 for ending inventory. The average exchange rate during 2013 was $0.805 per FCU. Assuming the foreign country is highly inflationary, the question asks for the amount of cost of goods sold that should be reflected in the U.S. dollar income statement.

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    The U.S. company's foreign subsidiary recorded costs in foreign currency units (FCU) in 2013, including FCU 10 million for cost of goods sold and FCU 500,000 for ending inventory. The average exchange rate during 2013 was $0.805 per FCU. Assuming the foreign country is highly inflationary, the question asks for the amount of cost of goods sold that should be reflected in the U.S. dollar income statement.

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    5 views1 page

    A U S Company S Foreign Subsidiary Had These Amounts in Foreign

    Uploaded by

    trilocksp Singh
    The U.S. company's foreign subsidiary recorded costs in foreign currency units (FCU) in 2013, including FCU 10 million for cost of goods sold and FCU 500,000 for ending inventory. The average exchange rate during 2013 was $0.805 per FCU. Assuming the foreign country is highly inflationary, the question asks for the amount of cost of goods sold that should be reflected in the U.S. dollar income statement.

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    A U S company s foreign subsidiary had these amounts in

    foreign
    A U.S. company's foreign subsidiary had these amounts in foreign currency units (FCU) in
    2013:Cost of goods sold . . . . . . . . . . . . . . . FCU 10,000,000Ending inventory . . . . . . . . . . . . . .
    . . . . . . . . . 500,000Beginning inventory . . . . . . . . . . . .. . . . . . . . . 200,000The average
    exchange rate during 2013 was $0.80 5 FCU 1. The beginning inventory was acquired when the
    exchange rate was $1.00 = FCU 1. Ending inventory was acquired when the exchange rate was
    $0.75 = FCU 1. The exchange rate at December 31, 2013, was $0.70 = FCU 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?a. $7,815,000.b. $8,040,000.c.
    $8,065,000.d. $8,090,000.View Solution: A U S company s foreign subsidiary had these
    amounts in foreign
    SOLUTION-- http://solutiondone.online/downloads/a-u-s-company-s-foreign-subsidiary-had-
    these-amounts-in-foreign/

    Unlock answers here solutiondone.online

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