Lazer(a Philippine Company) acquired 70 percent ownership of Wells (foreign company). The beginning inventory at the acquisition date was 250,000 LCUs. During the year Wells purchased 640,000 LCUs of inventory and ending inventory amounted to 200,000 LCUs. The ending inventory was acquired during the fourth quarter of the year. The acquisition date, average for the year, fourth quarter average, and end of year exchange rates were P.68, P.71, P.72 and P.73, respectively. Assuming inventory records are maintained on a First-in, First-out basis, what is the converted InvenCost of Goods Sold if the temporal method is applied. a. 142,000 b. 144,000 c. 146,000 d. 146,000
Lazer(a Philippine Company) acquired 70 percent ownership of Wells (foreign company). The beginning inventory at the acquisition date was 250,000 LCUs. During the year Wells purchased 640,000 LCUs of inventory and ending inventory amounted to 200,000 LCUs. The ending inventory was acquired during the fourth quarter of the year. The acquisition date, average for the year, fourth quarter average, and end of year exchange rates were P.68, P.71, P.72 and P.73, respectively. Assuming inventory records are maintained on a First-in, First-out basis, what is the converted InvenCost of Goods Sold if the temporal method is applied. a. 142,000 b. 144,000 c. 146,000 d. 146,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lazer(a Philippine Company) acquired 70 percent ownership of Wells (foreign company). The beginning inventory at the acquisition date was 250,000 LCUs. During the year Wells purchased 640,000 LCUs of inventory and ending inventory amounted to 200,000 LCUs. The ending inventory was acquired during the fourth quarter of the year. The acquisition date, average for the year, fourth quarter average, and end of year exchange rates were P.68, P.71, P.72 and P.73, respectively. Assuming inventory records are maintained on a First-in, First-out basis, what is the converted InvenCost of Goods Sold if the temporal method is applied.
a.
142,000
b.
144,000
c.
146,000
d.
146,000
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