A subsidiary of Dunder Inc., a U.S. company, was located in a foreign country.
A subsidiary of Dunder Inc., a U.S. company, was located in a foreign country. The functional currency of this subsidiary was the Stickle (§) which is the local currency where the subsidiary is located. The subsidiary acquired inventory on credit on November 1, 2020, for§120,000 that was sold on January 17, 2021 for §156,000. The subsidiary paid for the inventory on January 31, 2021. Currency exchange rates between the dollar and the Stickle were as follows:
November 1, 2020 | $ | 0.19 | = | § | 1 |
December 31, 2020 | $ | 0.20 | = | § | 1 |
January 1, 2021 | $ | 0.22 | = | § | 1 |
January 31, 2021 | $ | 0.23 | = | § | 1 |
Average for 2021 | $ | 0.24 | = | § | 1 |
What amount would have been reported for cost of goods sold on Dunder’s consolidated income statement at December 31, 2021?
A. $24,000.
B. $26,400.
C. $22,800.
D. $27,600.
E. $28,800.
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A subsidiary of Dunder Inc., a U.S. company, was located in a foreign country.
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Required information A subsidiary of Porter Inc., a U.S. company, was located in a foreign country. The functional currency of this subsidiary was the Stickle ($) which is the local currency where the subsidiary is located. The subsidiary acquired inventory on credit on November 1, 2017, for $120,000 that was sold on January 17, 2018 for $156,000. The subsidiary paid for the inventory on January 31, 2018. Currency exchange rates between the dollar and the Stickle were as follows: November...
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