Question

Stuff Company is a subsidiary of Pland Corporation and is located in Madrid, Spain, where the currency is the euro (€). Data on Stuff’s inventory and purchases are as follows:

Inventory, January 1, 20X7	€	225,000
Purchases during 20X7		861,000
Inventory, December 31, 20X7		186,000

The beginning inventory was acquired during the fourth quarter of 20X6, and the ending inventory was acquired during the fourth quarter of 20X7. Purchases were made evenly over the year. Exchange rates were as follows:
  

	€		$
Fourth quarter of 20X6	1	=	1.29015
January 1, 20X7	1	=	1.32030
Average during 20X7	1	=	1.39655
Fourth quarter of 20X7	1	=	1.45000
December 31, 20X7	1	=	1.47280

Required:
a. Show the remeasurement of cost of goods sold for 20X7, assuming that the U.S. dollar is the functional currency. (Round your intermediate calculations and final answer to nearest dollar amount.)

b. Show the translation of cost of goods sold for 20X7, assuming that the euro is the functional currency. (Round your final answer to nearest dollar amount.)

Answer 1

Answoro @ The Yeme asememant of cost de gods sold for Bets . Amount in Dollars of country , beginning imuentory = Amourt in Euros of county s x Exchange Rate =4-225,000 X 1.29015 = $290284. purchases = 861,000 X 1,39655 = $1202430 Ending inventory = 186,000 x 1.45000 =$269,700 Amount in Euros o cuantlys Famount in. Dalles d courkyo! + €195.000 $290284 1,202,430 861,000 - Particulars . beginning Arcalary purchase.communementen Goods available for sale Lecce Ending inventory Least of goods sold 1086 000 1492,714 186,000 6-900,000 269,700 $1,223,014

③ The translation of cost of goods sold for 2017: s sold = 6-900,000 X$1.39655 = $1,256,895 1.16900,1200 trom part@ Perificadors cost of geeds sold Amunt in Dollars country o ) $6256,895.