olmes's foreign subsidiary had the following inventory related amounts in local currency units (LCU) in 2020:

Cost of goods sold	LCU	5,050,000
Beginning inventory		511,000
Ending inventory		648,000

The average exchange rate during 2020 was $1.20 = LCU 1. The beginning inventory was acquired when the exchange rate was $1.00 = LCU 1. Ending inventory was acquired when the exchange rate was $1.30 = LCU 1. The exchange rate at December 31, 2020, was $1.35 = LCU 1. The U.S. dollar is the functional currency. At what amount should the foreign subsidiarys cost of goods sold be reflected in the U.S. dollar income statement?

Multiple Choice

• $5,893,000

• $6,817,500

• $5,050,000

• $5,382,000