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

question 57

Multiple Choice

A foreign subsidiary uses the first-in first-out inventory method. The following inventory balances are given at December 31, 2013 in local currency units (LCU) : Compute the December 31, 2013, 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.