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3 . A U . S . company s foreign subsidiary had the following amounts in stickles ( ) in 2 0 2 2 :
A US companys foreign subsidiary had the following amounts in stickles in :
Cost of goods sold
Ending inventory
Beginning inventory
Purchases
The average exchange rate during was $ The beginning inventory was acquired when the exchange rate was $ The ending inventory was acquired when the exchange rate was $ Purchases were acquired evenly throughout the year. Sales were made evenly throughout the year. The exchange rate at December was $
Required:
a Assuming that the functional currency was the US dollar temporal at what amount should the foreign subsidiarys cost of goods sold have been reflected in the US dollar income statement?
b Assuming that the functional currency was the stickle current at what amount should the foreign subsidiarys cost of goods sold have been reflected in the US dollar income statement?
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