Use the following facts for Question 8

Sheep Ltd., a Scottish subsidiary of Wool, Inc., a U.S. company, showed cost of goods sold on its income statement for the year ended December 31, 2010.

Inventory, 1/1/10 110,000

Purchases 950,000

Cost of Goods Available for Sale 1,060,000

Inventory, 12/31/10 200,000

Cost of Goods Sold 860,000

Exchange rates/

December 31, 2010 $0.522

December 31, 2009 $0.560

2010 average $0.547

1. What amount should be used to consolidate Sheep's cost of goods sold into Wool's income statement under the temporal rate method