A US Company's Foreign Subsidiary Had the Following Amounts in Stickles

question 88

Multiple Choice

A U.S. company's foreign subsidiary had the following amounts in stickles (§) in 2021: The average exchange rate during 2021 was §1 = $0.96. The beginning inventory was acquired when the exchange rate was §1 = $1.20. The ending inventory was acquired when the exchange rate was §1 = $0.90. The exchange rate at December 31, 2021 was §1 = $0.84. Assuming that the foreign country had a highly inflationary economy, at what amount should the foreign subsidiary's cost of goods sold have been reflected in the 2021 U.S. dollar income statement?

• A)$11,253,600.
• B)$11,577,600.
• C)$11,649,600.
• D)$11,613,600.
• E)$11,523,600.

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