Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik

تمرين 5

S. company's foreign subsidiary had these amounts in foreign currency units (FCU) in 2013:

The average exchange rate during 2013 was $0.80 = FCU 1. The beginning inventory was acquired when the exchange rate was $1.00 = FCU 1. Ending inventory was acquired when the exchange rate was $0.75 = FCU 1. The exchange rate at December 31, 2013, was $0.70 = FCU 1.
Assuming that the foreign country is highly inflationary, at what amount should the foreign subsidiary's cost of goods sold be reflected in the U.S. dollar income statement
a. $7,815,000.
b. $8,040,000.
c. $8,065,000.
d. $8,090,000.