A USCompany's Foreign Subsidiary Had the Following Amounts in Stickles (§)

question 7

Multiple Choice

A U.S.company's foreign subsidiary had the following amounts in stickles (§) in 2018: The average exchange rate during 2018 was §1 = $.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 = $.90.The exchange rate at December 31, 2018 was §1 = $.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 2018 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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Definitions:

Wait Time

The period a customer or process needs to wait before an action is taken or service is provided, often a measure of efficiency.

Lean Production Layout

An organizational strategy focused on reducing waste within manufacturing systems while ensuring quality and productivity improvements.

Decentralized Maintenance

A strategy where maintenance activities are distributed among various departments or sections of a business, rather than being centrally managed.

Small Production Batches

Manufacturing process involving the production of goods in small quantities, allowing for flexibility and customization.