The Canadian Subsidiary of a U

question 38

Multiple Choice

The Canadian subsidiary of a U.S.company reported cost of goods sold of 50,000 C$,for the current year ended December 31.The beginning inventory was 15,000 C$,and the ending inventory was 10,000 C$.Spot rates for various dates are as follows:

Assuming the U.S.dollar is the functional currency of the Canadian subsidiary,the remeasured amount of cost of goods sold that should appear in the consolidated income statement is

• A) $50,000
• B) $55,300
• C) $56,000
• D) $56,500

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Definitions:

Transportation Management

Transportation management involves planning, executing, and optimizing the physical movement of goods, focusing on efficient and effective transportation flow.

Supply Chains

Networks of individuals, organizations, resources, activities, and technology involved in the production and delivery of a product or service from supplier to consumer.

Outbound Logistics

The process involved in moving products from a company's premises to the end customer, including distribution and transportation.

Schedule Performance

The measurement of project execution progress by comparing planned versus actual progress.