Meisner Co. ordered parts costing §100,000 for a foreign supplier on May 12 when the spot...
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?
Multiple Choice
$25,000.
$28,000.
$0.
$2,000.
$24,000.
Homework Answers
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Amount to be reported as inventory. = Spot rate * order cost = 0.28 * 100,000 = $28,000 Option B is the answer |
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Meisner Co. ordered parts costing §100,000 for a foreign
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