Question # 20 & 21: The Year 2015 financial statements of the Russian subsidiary of Globe...

 

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Question # 20 & 21: The Year 2015 financial statements of the Russian subsidiary of Globe Corporation (a German company) revealed the following: Beginning Inventory Purchases. Ending Inventory Cost of Goods Sold. January 1, 2015. Average, 2015... December 31, 2015 Your response: Euro Russian Ruble $330,000 Ruble 480,000 Euro dollar (E)1 Ruble es 0.38 Ruble 600,000 0.29 The beginning inventory was acquired in 4 quarter of the previous year when exchange rate was €50.45= 1 Ruble; ending inventory was acquired in 4 quarter of 2015 when exchange rate was ESO.37-1 Ruble. 210,000 0.32 20) Required: Assuming the current rate method is the appropriate method of currency translation, determine the amounts at which the Russian subsidiary's ending inventory and cost of goods sold should be included in Globe's Year 2015 consolidated financial statements. X Exchange Rate 21) Required: Assuming the temporal method is the appropriate method of currency translation, determine the amounts at which the Russian subsidiary's ending inventory and cost of goods sold should be included in Globe's Year 2015 consolidated financial statements. Your response: X Exchange Rate Euro Question # 20 & 21: The Year 2015 financial statements of the Russian subsidiary of Globe Corporation (a German company) revealed the following: Beginning Inventory Purchases. Ending Inventory Cost of Goods Sold. January 1, 2015. Average, 2015... December 31, 2015 Your response: Euro Russian Ruble $330,000 Ruble 480,000 Euro dollar (E)1 Ruble es 0.38 Ruble 600,000 0.29 The beginning inventory was acquired in 4 quarter of the previous year when exchange rate was €50.45= 1 Ruble; ending inventory was acquired in 4 quarter of 2015 when exchange rate was ESO.37-1 Ruble. 210,000 0.32 20) Required: Assuming the current rate method is the appropriate method of currency translation, determine the amounts at which the Russian subsidiary's ending inventory and cost of goods sold should be included in Globe's Year 2015 consolidated financial statements. X Exchange Rate 21) Required: Assuming the temporal method is the appropriate method of currency translation, determine the amounts at which the Russian subsidiary's ending inventory and cost of goods sold should be included in Globe's Year 2015 consolidated financial statements. Your response: X Exchange Rate Euro

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20 Current rate method nate Therefore Russial Subsidiarys ending inventory in Globes Year 2015 Cons... View the full answer