Basil 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 £18800, and the ending inventory was £13100. Purchases of £27600 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 £1 = $1.11 £1 = $1.10 £1 = $1.14 £1 = $1.19 Average rate for the year Date the ending inventory was acquired Assume that the Great Britain Pound 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.
Basil 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 £18800, and the ending inventory was £13100. Purchases of £27600 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 £1 = $1.11 £1 = $1.10 £1 = $1.14 £1 = $1.19 Average rate for the year Date the ending inventory was acquired Assume that the Great Britain Pound 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.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter13: Accounting For Merchandise Inventory
Section: Chapter Questions
Problem 1MP: Hurst Companys beginning inventory and purchases during the fiscal year ended December 31, 20-2,...
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![Basil 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 £18800, and the ending inventory was £13100.
Purchases of £27600 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
£1 = $1.11
£1 = $1.10
£1 = $1.14
£1 = $1.19
Average rate for the year
Date the ending inventory was acquired
Assume that the Great Britain Pound 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.
Vour Answer:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F585055c6-b06c-4ced-af10-4617668120f0%2Ff012fdd9-5d07-44da-b015-a3ecdd220bf3%2Fzp1w4s_processed.png&w=3840&q=75)
Transcribed Image Text:Basil 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 £18800, and the ending inventory was £13100.
Purchases of £27600 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
£1 = $1.11
£1 = $1.10
£1 = $1.14
£1 = $1.19
Average rate for the year
Date the ending inventory was acquired
Assume that the Great Britain Pound 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.
Vour Answer:
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