A foreign subsidiary uses the first-in first-out inventory method. The following inventory balances are given at December 31, 2013 in local currency units (LCU): Compute the December 31, 2013, inventory balance using the lower of cost or market method under the temporal method.

Question

A foreign subsidiary uses the first-in first-out inventory method. The following inventory balances are given at December 31, 2013 in local currency units (LCU):  Compute the December 31, 2013, inventory balance using the lower of cost or market method under the temporal method.

Quizplus · Accepted Answer

Inventory at Cost 320,000 LCU × $1.43 = $457,600

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