Question
23. Esposito is an Italian subsidiary of a U.S. company. Esposito's ending inventory is valued at the average cost for the last quarter of the
23. Esposito is an Italian subsidiary of a U.S. company.
Esposito's ending inventory is valued at the average cost for the last quarter of the year.
The following account balances are available for Esposito for 2018:
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| Beginning inventory | 20,000 | |
| Purchases | 400,000 | |
| Ending inventory | 15,000 | |
| - | ||
Relevant exchange rates follow:
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| 4th quarter average, 2017 | $ | 0.93 | = | 1 | ||
| December 31, 2017 | $ | 0.94 | = | 1 | ||
| Average for 2018 | $ | 0.96 | = | 1 | ||
| 4th quarter average, 2018 | $ | 0.99 | = | 1 | ||
| December 31, 2018 | $ | 1.01 | = | 1 | ||
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Compute the cost of goods sold for 2018 in U.S. dollars using the temporal method.
A) $387,750.
B) $409,050.
C) $400,950.
D) $376,650.
E) $388,800.
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
7th Edition
978-0470477151, 978-0-470-5562, 470556242, 0-470-55624-2, 9780470556245, 978-0470507018
