REFERENCE: Ref.09_02 Brisco Bricks Purchases Raw Material from Its Foreign Supplier,Bolivian Clay,on

question 73

Multiple Choice

REFERENCE: Ref.09_02
Brisco Bricks purchases raw material from its foreign supplier,Bolivian Clay,on May 8.Payment of 2,000,000 foreign currency units (FC) is due in 30 days.May 31 is Brisco's fiscal year-end.The pertinent exchange rates were as follows:
-Meisner Co.ordered parts costing §100,000 for a foreign supplier on May 12 when the spot rate was $.24 per stickle.A one-month forward contract was signed on that date to purchase §100,000 at a forward rate of $.25 per stickle.On June 12,when the parts were received and payment was made,the spot rate was $.28 per stickle.At what amount should inventory be reported?

• A)$0.
• B)$28,000.
• C)$24,200.
• D)$25,000.
• E)$2,000.

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