Question
Parnell co. Is located in tupelo MS, but owns 80% of Sveite Co. which operates in Paris, France. Assume that Ss functional currency is the
Parnell co. Is located in tupelo MS, but owns 80% of Sveite Co. which operates in Paris, France. Assume that Ss functional currency is the US dollar. On 1/1/x1 that S reported an inventory of 20,000 units that cost 200,000 francs and the S uses the FIFO inventory method. During quarter 1, S purchased 10,000 additional units at a cost of 150,000 francs. During year X1, S sold 8,000 units. Exchange rates were as follows:
1/1/x1 $1.1 per 1 franc
3/31/x1 $1.3 per franc
Average exchange rate: $1.2 per franc
Based on this information, what is the translated/ re-measured COGS amount that S should report on 3/31/x1?
- 80,000
- 88,000
- 96,000
- 104,000
- None of the above
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