Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company. Re-measurement: It is process to measure the financial results of any other currency into functional currency. Cost of goods sold: It the value of the goods which is sold during the year. It the basic cost of the goods without profit element. It is calculated by adding opening stock and purchases during the year and subtracting the result by closing stock. The re-measurement of cost of goods sold for the year 20X7 assuming U.S dollar is the functional currency.

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Answer 1

Question

Chapter 12, Problem 12.11E

(a)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Cost of goods sold: It the value of the goods which is sold during the year. It the basic cost of the goods without profit element. It is calculated by adding opening stock and purchases during the year and subtracting the result by closing stock.

The re-measurement of cost of goods sold for the year 20X7 assuming U.S dollar is the functional currency.

(b)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Cost of goods sold: It the value of the goods which is sold during the year. It the basic cost of the goods without profit element. It is calculated by adding opening stock and purchases during the year and subtracting the result by closing stock.

The translation of cost of goods sold for 20X7 assuming euro as the functional currency.

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I am looking for the correct answer to this financial accounting problem using valid accounting standards.

Please explain the correct approach for solving this general accounting question.

Wisteria Manufacturing produces a product that sells for $78.00. Fixed costs are $345,000, and variable costs are $34.50 per unit. Wisteria can buy a new production machine that will increase fixed costs by $15,600 per year but will decrease variable costs by $5.50 per unit. Compute the contribution margin per unit if the machine is purchased. a) $27.00 b) $49.00 c) $31.00 d) $33.00 e) $28.00

Answer 2

Question

Chapter 12, Problem 12.11E

(a)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Cost of goods sold: It the value of the goods which is sold during the year. It the basic cost of the goods without profit element. It is calculated by adding opening stock and purchases during the year and subtracting the result by closing stock.

The re-measurement of cost of goods sold for the year 20X7 assuming U.S dollar is the functional currency.

(b)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Cost of goods sold: It the value of the goods which is sold during the year. It the basic cost of the goods without profit element. It is calculated by adding opening stock and purchases during the year and subtracting the result by closing stock.

The translation of cost of goods sold for 20X7 assuming euro as the functional currency.

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Answer 3

Question

Chapter 12, Problem 12.11E

(a)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Cost of goods sold: It the value of the goods which is sold during the year. It the basic cost of the goods without profit element. It is calculated by adding opening stock and purchases during the year and subtracting the result by closing stock.

The re-measurement of cost of goods sold for the year 20X7 assuming U.S dollar is the functional currency.

(b)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Cost of goods sold: It the value of the goods which is sold during the year. It the basic cost of the goods without profit element. It is calculated by adding opening stock and purchases during the year and subtracting the result by closing stock.

The translation of cost of goods sold for 20X7 assuming euro as the functional currency.

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Answer 4

Question

Chapter 12, Problem 12.11E

(a)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Cost of goods sold: It the value of the goods which is sold during the year. It the basic cost of the goods without profit element. It is calculated by adding opening stock and purchases during the year and subtracting the result by closing stock.

The re-measurement of cost of goods sold for the year 20X7 assuming U.S dollar is the functional currency.

(b)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Cost of goods sold: It the value of the goods which is sold during the year. It the basic cost of the goods without profit element. It is calculated by adding opening stock and purchases during the year and subtracting the result by closing stock.

The translation of cost of goods sold for 20X7 assuming euro as the functional currency.

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Answer 5

Chapter 12, Problem 12.11E

(a)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Cost of goods sold: It the value of the goods which is sold during the year. It the basic cost of the goods without profit element. It is calculated by adding opening stock and purchases during the year and subtracting the result by closing stock.

The re-measurement of cost of goods sold for the year 20X7 assuming U.S dollar is the functional currency.

(b)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Cost of goods sold: It the value of the goods which is sold during the year. It the basic cost of the goods without profit element. It is calculated by adding opening stock and purchases during the year and subtracting the result by closing stock.

The translation of cost of goods sold for 20X7 assuming euro as the functional currency.

Answer 6

Chapter 12, Problem 12.11E

(a)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Cost of goods sold: It the value of the goods which is sold during the year. It the basic cost of the goods without profit element. It is calculated by adding opening stock and purchases during the year and subtracting the result by closing stock.

The re-measurement of cost of goods sold for the year 20X7 assuming U.S dollar is the functional currency.

Answer 7

Chapter 12, Problem 12.11E

(a)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Cost of goods sold: It the value of the goods which is sold during the year. It the basic cost of the goods without profit element. It is calculated by adding opening stock and purchases during the year and subtracting the result by closing stock.

The re-measurement of cost of goods sold for the year 20X7 assuming U.S dollar is the functional currency.

Answer 8

(b)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Cost of goods sold: It the value of the goods which is sold during the year. It the basic cost of the goods without profit element. It is calculated by adding opening stock and purchases during the year and subtracting the result by closing stock.

The translation of cost of goods sold for 20X7 assuming euro as the functional currency.

Answer 9

(b)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Cost of goods sold: It the value of the goods which is sold during the year. It the basic cost of the goods without profit element. It is calculated by adding opening stock and purchases during the year and subtracting the result by closing stock.

The translation of cost of goods sold for 20X7 assuming euro as the functional currency.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 12 - Prob. 12.1Q Ch. 12 - Prob. 12.2Q Ch. 12 - Prob. 12.3Q Ch. 12 - How widely used are IFRS? Can IFRS be used for...Ch. 12 - Prob. 12.5Q Ch. 12 - Prob. 12.6Q Ch. 12 - Prob. 12.7Q Ch. 12 - Prob. 12.8Q Ch. 12 - Prob. 12.9Q Ch. 12 - Prob. 12.10Q

Solution Summary: The author explains how translation is used to convert financial results of the business of subsidiary company into the functional currency of parent company.

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