sposito is an Italian subsidiary of a U.S. company. Esposito’s ending inventory is valued at the average cost for the last quarter of the year. The following account balances are available for Esposito for 2021: Beginning inventory € 20,000 Purchases € 400,000 Ending inventory € 15,000
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Esposito is an Italian subsidiary of a U.S. company.
Esposito’s ending inventory is valued at the average cost for the last quarter of the year.
The following account balances are available for Esposito for 2021:
Beginning inventory | € | 20,000 |
Purchases | € | 400,000 |
Ending inventory | € | 15,000 |
Relevant exchange rates follow:
4th quarter average, 2020 | $ | 0.93 | = | € | 1 |
December 31, 2020 | 0.94 | = | € | 1 | |
Average for 2021 | 0.96 | = | € | 1 | |
4th quarter average, 2021 | 0.99 | = | € | 1 | |
December 31, 2021 | 1.01 | = | € | 1 | |
Compute the cost of goods sold for 2021 in U.S. dollars using the temporal method.
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