Esposito Is an Italian Subsidiary of a U -Compute the Cost of Goods Sold for 2011 in U

Esposito is an Italian subsidiary of a U.S. company.
Esposito's ending inventory is valued at the average cost for the last quarter of the year.
The following account balances are available for Esposito for 2011: $$\begin{array}{l}\begin{array} { l l r } \text { Beginning inventory } & € 20,000 \\\text { Purchases } & € { 400,000 } \\\text { Ending inventory } & € 15,000\end{array}\\\text { Relevant exchange rates follow: }\\\begin{array} { l r } 4 {^ \text {th } { \text {quarter average, } } 2010 } & \$ 93 = € 1 \\\text { December } 31,2010 & .94 = € 1 \\\text { Average 2011 } & .96 = € 1 \\4 {^ \text {th } { \text {quarter average, } } 2011 } & .99 = € 1 \\\text { December 31, 2011 } & 1.01 = € 1\end{array}\end{array}$$
-Compute the cost of goods sold for 2011 in U.S. dollars using the current rate method.

A) $376,550.
B) $387,750.
C) $388,800.
D) $400,950.
E) $409,050.