A Foreign Subsidiary Uses the First-In First-Out Inventory Method

question 33

Multiple Choice

A foreign subsidiary uses the first-in first-out inventory method. The following inventory balances are given at December 31, 2011 in local currency units (LCU) :

Compute the December 31, 2011, inventory balance using the lower of cost or market method under the temporal method.

• A) $429,000.
• B) $457,600.
• C) $596,400.
• D) $568,000.
• E) $426,000.

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Definitions:

Sensorimotor Intelligence

The first stage in Piaget's theory of cognitive development (birth to about age 2), where infants gain understanding of the world through their physical actions and sensory experiences.

Anticipate

To expect or predict something based on current knowledge or intuition, often involving preparation or proactive behavior.

Problem-Solving

The process of identifying a problem, developing potential solutions, and implementing a solution to overcome an obstacle or challenge.

Rovee-Collier

A reference to Carolyn Rovee-Collier, known for her research in infant memory and learning capabilities.