Austin Powers plc, the British subsidiary of a U.S. company reported cost of goods sold in Great Britain Pounds for thecurrent year ended December 31.The beginning inventory was £18300, and the ending inventory was £15100.Purchases of £22600 were made evenly throughout the year.Spot rates for various dates are as follows:Date the beginning inventory was acquiredRate at the start of the year£1 = $1.11£1 = $1.11£1 = $1.14£1 = $1.18Average rate for the yearDate the ending inventory was acquiredAssume that the U.S.dollar is the functional currency of the British subsidiary.Given the facts above, the amount of cost of goods sold, restated in US $, that should appear in the consolidatedincome statement is:BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF$1,000.Your Answer:

Direct cost incurred by company for producing products and services is known as cost of goods sold.

Austin Powers plc, the British subsidiary of a U.S. company reported cost of goods sold in Great Britain Pounds for the current year ended December 31. The beginning inventory was £18300, and the ending inventory was £15100. Purchases of £22600 were made evenly throughout the year. Spot rates for various dates are as follows: Date the beginning inventory was acquired Rate at the start of the year Average rate for the year Date the ending inventory was acquired £1 = $1.11 £1 = $1.11 £1 = $1.14 £1 = $1.18 Assume that the U.S.dollar is the functional currency of the British subsidiary. Given the facts above, the amount of cost of goods sold, restated in US $, that should appear in the consolidated income statement is: BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000.

Austin Powers plc, the British subsidiary of a U.S. company reported cost of goods sold in Great Britain Pounds for the current year ended December 31. The beginning inventory was £18300, and the ending inventory was £15100. Purchases of £22600 were made evenly throughout the year. Spot rates for various dates are as follows: Date the beginning inventory was acquired Rate at the start of the year Average rate for the year Date the ending inventory was acquired £1 = $1.11 £1 = $1.11 £1 = $1.14 £1 = $1.18 Assume that the U.S.dollar is the functional currency of the British subsidiary. Given the facts above, the amount of cost of goods sold, restated in US $, that should appear in the consolidated income statement is: BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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