A foreign subsidiary uses the first-in first-out inventory method. The following inventory balances are given at December 31, 2013 in local currency units (LCU): Compute the December 31, 2013, inventory balance using the lower of cost or market method under the temporal method.
A) $429,000.
B) $457,600.
C) $596,400.
D) $568,000.
E) $426,000.

Question

A foreign subsidiary uses the first-in first-out inventory method. The following inventory balances are given at December 31, 2013 in local currency units (LCU):  Compute the December 31, 2013, inventory balance using the lower of cost or market method under the temporal method.
A) $429,000. 
B) $457,600. 
C) $596,400. 
D) $568,000. 
E) $426,000.

Quizplus · Accepted Answer

Inventory at Cost 320,000 LCU × $1.43 = $457,600

A Foreign Subsidiary Uses the First-In First-Out Inventory Method