A Foreign Subsidiary Uses the First-In First-Out Inventory Method

question 22

Multiple Choice

A foreign subsidiary uses the first-in first-out inventory method. The following inventory balances are given at December 31, 2021 in local currency units (LCU) : The following exchange rates are given for 2021:
Compute the December 31, 2021, inventory balance using the lower of cost or net realizable value method under the temporal method.

• A)$321,000.
• B)$457,600.
• C)$596,400.
• D)$454,400.
• E)$419,000.

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Definitions:

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