22. A U.S. company's foreign subsidiary had the following amounts in stickles () in 2018:...
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Accounting
22. A U.S. company's foreign subsidiary had the following amounts in stickles () in 2018:
Cost of goods sold
12,000,000
Ending inventory
600,000
Beginning inventory
240,000
The average exchange rate during 2018 was 1 = $.96. The beginning inventory was acquired when the exchange rate was 1 = $1.20. The ending inventory was acquired when the exchange rate was 1 = $.90. The exchange rate at December 31, 2018 was 1 = $.84. Assuming that the foreign country had a highly inflationary economy, at what amount should the foreign subsidiary's cost of goods sold have been reflected in the 2018 U.S. dollar income statement?
A) $11,613,600.
B) $11,577,600.
C) $11,649,600.
D) $11,253,600.
E) $11,523,600.
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