On January 1, the wholly- owned Mexican affiliate of a Canadian percent company acquired an inventory of computer hard drives for its assembly operation. The cost incurred was 384000 pesos when the exchange rate was MXN 10.7=C$1. By year-end, the Mexican affiliate had used three-fourths of the acquired hard drives. Due to advance in hardware technology, the remaining inventory was marked down to its net realizable value of MXN 39000. The year-end exchange rate was MXN 10.6 = C$1. The average rate during the year was MXN 10.9 = C$1. Translate the ending inventory to Canadian dollars assuming the Mexican affiliate’s functional currency is the Mexican peso
On January 1, the wholly- owned Mexican affiliate of a Canadian percent company acquired an inventory of computer hard drives for its assembly operation. The cost incurred was 384000 pesos when the exchange rate was MXN 10.7=C$1. By year-end, the Mexican affiliate had used three-fourths of the acquired hard drives. Due to advance in hardware technology, the remaining inventory was marked down to its net realizable value of MXN 39000. The year-end exchange rate was MXN 10.6 = C$1. The average rate during the year was MXN 10.9 = C$1. Translate the ending inventory to Canadian dollars assuming the Mexican affiliate’s functional currency is the Mexican peso
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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14.
On January 1, the wholly- owned Mexican affiliate of a Canadian percent company acquired an inventory of computer hard drives for its assembly operation.
The cost incurred was 384000 pesos when the exchange rate was MXN 10.7=C$1. By year-end, the Mexican affiliate had used three-fourths of the acquired hard drives. Due to advance in hardware technology, the remaining inventory was marked down to its net realizable value of MXN 39000. The year-end exchange rate was MXN 10.6 = C$1. The average rate during the year was MXN 10.9 = C$1.
Translate the ending inventory to Canadian dollars assuming the Mexican affiliate’s functional currency is the Mexican peso
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