Question
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.
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 2024:
| Beginning inventory | 20,000 |
|---|---|
| Purchases | 400,000 |
| Ending inventory | 15,000 |
Relevant exchange rates follow:
| 4th quarter average, 2023 | $ 0.93 = 1 |
|---|---|
| December 31, 2023 | 0.94 = 1 |
| Average for 2024 | 0.96 = 1 |
| 4th quarter average, 2024 | 0.99 = 1 |
| December 31, 2024 | 1.01 = 1 |
Compute ending inventory for 2024 under the current rate method.
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Intermediate Accounting principles and analysis
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
2nd Edition
471737933, 978-0471737933
