Mercury Company is a subsidiary of Neptune Company and is located in Valpara'so,Chile,where the currency is the Chilean Peso.Data on Mercury's inventory and purchases are as follows:
The beginning inventory was acquired during the fourth quarter of 20X7,and the ending inventory was acquired during the fourth quarter of 20X8.Purchases were made evenly over the year.Exchange rates were as follows:

-Refer the information provided above.Assuming the U.S.dollar is the functional currency,what is the amount of Mercury's cost of goods sold remeasured in U.S.dollars?
A)$1,680
B)$1,712
C)$1,700
D)$1,692

Question

Mercury Company is a subsidiary of Neptune Company and is located in Valpara'so,Chile,where the currency is the Chilean Peso.Data on Mercury's inventory and purchases are as follows:
The beginning inventory was acquired during the fourth quarter of 20X7,and the ending inventory was acquired during the fourth quarter of 20X8.Purchases were made evenly over the year.Exchange rates were as follows:
  
-Refer the information provided above.Assuming the U.S.dollar is the functional currency,what is the amount of Mercury's cost of goods sold remeasured in U.S.dollars?
A)$1,680 
B)$1,712 
C)$1,700 
D)$1,692

Quizplus · Accepted Answer

The cost of goods sold is remeasured using the historical exchange rate at the time of purchase. The correct amount is $1,692 based on the given exchange rates and purchase details.

Mercury Company Is a Subsidiary of Neptune Company and Is