A foreign subsidiary uses the first-in first-out inventory method. The following inventory balances are given at December 31, 2021 in local currency units (LCU): The following exchange rates are given for 2021: Compute the December 31, 2021, inventory balance using the lower of cost or net realizable value method under the temporal method.
A) $321,000.
B) $457,600.
C) $596,400.
D) $454,400.
E) $419,000.

Question

A foreign subsidiary uses the first-in first-out inventory method. The following inventory balances are given at December 31, 2021 in local currency units (LCU):  The following exchange rates are given for 2021:  Compute the December 31, 2021, inventory balance using the lower of cost or net realizable value method under the temporal method.
A) $321,000. 
B) $457,600. 
C) $596,400. 
D) $454,400. 
E) $419,000.

Quizplus · Accepted Answer

The Answer of A foreign subsidiary uses the first-in first-out inventory method. The following inventory balances are given at December 31, 2021 in local currency units (LCU):  The following exchange rates are given for 2021:  Compute the December 31, 2021, inventory balance using the lower of cost or net realizable value method under the temporal method.
A) $321,000. 
B) $457,600. 
C) $596,400. 
D) $454,400. 
E) $419,000.

A Foreign Subsidiary Uses the First-In First-Out Inventory Method