Mercury Company Is a Subsidiary of Neptune Company and Is

question 57

Multiple Choice

Mercury Company is a subsidiary of Neptune Company and is located in Valparaíso, Chile, where the currency is the Chilean Peso. Data on Mercury's inventory and purchases are as follows: The beginning inventory was acquired during the fourth quarter of 20X7, and the ending inventory was acquired during the fourth quarter of 20X8. Purchases were made evenly over the year. Exchange rates were as follows:
Refer the information provided above. Assuming the U.S. dollar is the functional currency, what is the amount of Mercury's cost of goods sold remeasured in U.S. dollars?

• A) $1,680
• B) $1,712
• C) $1,700
• D) $1,692

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Definitions:

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize nutrients from carbon dioxide and water, producing oxygen as a byproduct.

Oxygen

A chemical element with symbol O, essential for cellular respiration in most living organisms and a major component of Earth's atmosphere.

Metabolic Pathways

Sequences of chemical reactions that occur in a cell, transforming substrates into products and energy.

Sunlight

The natural light emitted by the Sun, which is a primary energy source for Earth's climate system and necessary for photosynthesis in plants.