Mercury Company Is a Subsidiary of Neptune Company and Is

question 48

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:
Based on the preceding information, the translation of cost of goods sold for 20X8, assuming that the Spanish peseta is the functional currency is:

• A) $1,700.
• B) $1,760.
• C) $1,680.
• D) $1,692.

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