A U.S. company's foreign subsidiary had the following amounts in stickles (§), the functional currency, in 2021: The average exchange rate during 2021 was §1 = $0.98. The beginning inventory was acquired when the exchange rate was §1 = $1.18. The ending inventory was acquired when the exchange rate was §1 = $0.92. The exchange rate at December 31, 2021 was §1 = $0.82. At what amount should the foreign subsidiary's cost of goods sold have been reflected in the 2021 U.S. dollar income statement?
A) $21,240,000.
B) $16,560,000.
C) $17,640,000.
D) $14,760,000.
E) $17,110,800.

Question

A U.S. company's foreign subsidiary had the following amounts in stickles (§), the functional currency, in 2021:  The average exchange rate during 2021 was §1 = $0.98. The beginning inventory was acquired when the exchange rate was §1 = $1.18. The ending inventory was acquired when the exchange rate was §1 = $0.92. The exchange rate at December 31, 2021 was §1 = $0.82. At what amount should the foreign subsidiary's cost of goods sold have been reflected in the 2021 U.S. dollar income statement?
A) $21,240,000. 
B) $16,560,000. 
C) $17,640,000. 
D) $14,760,000. 
E) $17,110,800.

Quizplus · Accepted Answer

The Answer of A U.S. company's foreign subsidiary had the following amounts in stickles (§), the functional currency, in 2021:  The average exchange rate during 2021 was §1 = $0.98. The beginning inventory was acquired when the exchange rate was §1 = $1.18. The ending inventory was acquired when the exchange rate was §1 = $0.92. The exchange rate at December 31, 2021 was §1 = $0.82. At what amount should the foreign subsidiary's cost of goods sold have been reflected in the 2021 U.S. dollar income statement?
A) $21,240,000. 
B) $16,560,000. 
C) $17,640,000. 
D) $14,760,000. 
E) $17,110,800.

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