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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

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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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