A U.S. company's foreign subsidiary had the following amounts in stickles (§) in 2021: The average exchange rate during 2021 was §1 = $0.96. The beginning inventory was acquired when the exchange rate was §1 = $1.20. The ending inventory was acquired when the exchange rate was §1 = $0.90. The exchange rate at December 31, 2021 was §1 = $0.84. Assuming that the foreign country had a highly inflationary economy, at what amount should the foreign subsidiary's cost of goods sold have been reflected in the 2021 U.S. dollar income statement?
A) $11,253,600.
B) $11,577,600.
C) $11,649,600.
D) $11,613,600.
E) $11,523,600.

Question

A U.S. company's foreign subsidiary had the following amounts in stickles (§) in 2021:  The average exchange rate during 2021 was §1 = $0.96. The beginning inventory was acquired when the exchange rate was §1 = $1.20. The ending inventory was acquired when the exchange rate was §1 = $0.90. The exchange rate at December 31, 2021 was §1 = $0.84. Assuming that the foreign country had a highly inflationary economy, at what amount should the foreign subsidiary's cost of goods sold have been reflected in the 2021 U.S. dollar income statement?
A) $11,253,600. 
B) $11,577,600. 
C) $11,649,600. 
D) $11,613,600. 
E) $11,523,600.

Quizplus · Accepted Answer

The Answer of A U.S. company's foreign subsidiary had the following amounts in stickles (§) in 2021:  The average exchange rate during 2021 was §1 = $0.96. The beginning inventory was acquired when the exchange rate was §1 = $1.20. The ending inventory was acquired when the exchange rate was §1 = $0.90. The exchange rate at December 31, 2021 was §1 = $0.84. Assuming that the foreign country had a highly inflationary economy, at what amount should the foreign subsidiary's cost of goods sold have been reflected in the 2021 U.S. dollar income statement?
A) $11,253,600. 
B) $11,577,600. 
C) $11,649,600. 
D) $11,613,600. 
E) $11,523,600.

A US Company's Foreign Subsidiary Had the Following Amounts in Stickles