All of the Following Statements Are Stated in Brazil Reals

question 14

Multiple Choice

All of the following statements are stated in Brazil reals (R$)

Additional information:
Selected exchange rates:

Date of purchase of inventory on hand at year-end R$1 = $.05688
Dividends were declared on June 30,20X5 Opening inventory = R$130,000
Inventory purchases for the year = R$1,570,000
Machinery,land,and buildings were purchased on June 30,20X4
Bralta is the Brazilian subsidiary of Altapro Co. ,a Canadian company.Under the current-rate method,what is the net income?

• A)$110,460
• B)$114,880
• C)$115,290
• D)$118,120

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Definitions:

Selling Price

The amount at which a product or service is sold to customers.

Variable Cost

Financial outlays that fluctuate based on the activity levels or production volumes within a company.

Fixed Cost

Expenses that do not change with the level of production or sales in the short term, such as rent, salary, and insurance.

High-Low Method

A technique in cost accounting used to estimate fixed and variable cost components of a product or service based on the highest and lowest levels of activity.