A U.S. company's foreign subsidiary had the following amounts in stickles (§), the functional currency, in 2011: $\begin{array}{lr}
\text { Cost of goods sold } & \S 12,000,000 \
\text { Ending inventory } & 600,000 \
\text { Beginning inventory } & 240,000
\end{array}$
The average exchange rate during 2011 was §1 = $.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 = $.90. The exchange rate at December 31, 2011 was §1 = $.84. At what amount should the foreign subsidiary's cost of goods sold have been reflected in the 2011 U.S. dollar income statement?

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The Answer of A U.S. company's foreign subsidiary had the following amounts in stickles (§), the functional currency, in 2011: $\begin{array}{lr}
\text { Cost of goods sold } & \S 12,000,000 \
\text { Ending inventory } & 600,000 \
\text { Beginning inventory } & 240,000
\end{array}$
The average exchange rate during 2011 was §1 = $.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 = $.90. The exchange rate at December 31, 2011 was §1 = $.84. At what amount should the foreign subsidiary's cost of goods sold have been reflected in the 2011 U.S. dollar income statement?

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