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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?

  1. 80,000
  2. 88,000
  3. 96,000
  4. 104,000
  5. None of the above

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