Nelson Co Ordered Parts Costing §120,000 from a Foreign Supplier on on May

question 18

Multiple Choice

Nelson Co. ordered parts costing §120,000 from a foreign supplier on May 12 when the spot rate was $0.31 per stickle. A one-month forward contract was signed on that date to purchase §120,000 at a forward rate of $0.32 per stickle. On June 12, when the parts were received and payment was made, the spot rate was $0.36 per stickle. At what amount should inventory be reported?

• A) $0.
• B) $43,200.
• C) $38,400.
• D) $37,200.
• E) $6,000.

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Definitions:

Lactated Ringer's Solution

is a fluid commonly used for intravenous hydration and electrolyte replenishment in medical settings, especially during surgery.

Normal Saline

A sterile solution of sodium chloride in water, commonly used in medical settings for a variety of purposes, including hydration and wound cleaning.

Metabolic Acidosis

A disturbance in the body's acid-base balance resulting in a lower than normal blood pH due to increased acid or decreased bicarbonate.