Wrobel Industries Inc

question 24

Multiple Choice

Wrobel Industries Inc.reported the following information about the production and sale of its only product during the first month of operations: Under variable costing,what is the cost of the finished goods ending inventory?

• A)$63,000
• B)$72,000
• C)$126,000
• D)$144,000

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Definitions:

Exchange Gain

The gain resulting from a favorable change in exchange rates affecting the value of foreign currency transactions.

Accounts Receivable

Money owed by customers to a company for goods or services that have been delivered or used but not yet paid for.

Functional Currency

The primary currency of the primary economic environment in which an entity operates, usually the local currency or the currency of the main revenue-generating activities.

Translation Rate

The exchange rate used to convert the financial statements of a foreign subsidiary into the currency of the parent company.