Question 3 A. Judge Industries is a U.S. based company with subsidiaries worldwide. VME Group is...

 

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Question 3 A. Judge Industries is a U.S. based company with subsidiaries worldwide. VME Group is a 100% owned non-U.S. subsidiary of A. Judge Industries. VME Group's local currency is the LCU. For fiscal year-end 20x2, VME Group reports the following cost of goods sold amount: Amounts in LCUS 32,000 425,000 457,000 (43,000) LCU 414,000 Inventory, 1/1/20x2 Add: 20x2 Purchases Total inventory available for sale Less: Ending inventory, 12/31/20x2 Cost of goods sold for 20x2 Relevant exchange rates for the period are: 1/1/20x2 12/31/20x2 Date Average for 20x2 Average for Q4 of 20x2 Average for Q4 of 20x1 Rate $0.91 =1 LCU $0.96 = 1 LCU $0.935 = 1 LCU $0.95 = 1 LCU $0.89 = 1 LCU For this question, assume the following: • 1/1/20x2 beginning inventory was incurred evenly throughout the 4th quarter of 20x1, Fiscal year 20x2 inventory purchases occurred evenly throughout fiscal year 20x2, and . • 12/31/20x2 ending inventory was incurred evenly throughout the 4th quarter of 20x2. Required A. Assuming VME Group's functional currency is the U.S. dollar, use the proper method to convert their cost of goods sold and ending inventory from LCUS to U.S. dollar equivalent for reporting in the Parent financial reports. B. Assuming VME Group's functional currency is the LCU, use the proper method to convert their cost of goods sold and ending inventory from LCUs to the U.S. dollar equivalent for reporting in the Parent financial reports. Question 3 A. Judge Industries is a U.S. based company with subsidiaries worldwide. VME Group is a 100% owned non-U.S. subsidiary of A. Judge Industries. VME Group's local currency is the LCU. For fiscal year-end 20x2, VME Group reports the following cost of goods sold amount: Amounts in LCUS 32,000 425,000 457,000 (43,000) LCU 414,000 Inventory, 1/1/20x2 Add: 20x2 Purchases Total inventory available for sale Less: Ending inventory, 12/31/20x2 Cost of goods sold for 20x2 Relevant exchange rates for the period are: 1/1/20x2 12/31/20x2 Date Average for 20x2 Average for Q4 of 20x2 Average for Q4 of 20x1 Rate $0.91 =1 LCU $0.96 = 1 LCU $0.935 = 1 LCU $0.95 = 1 LCU $0.89 = 1 LCU For this question, assume the following: • 1/1/20x2 beginning inventory was incurred evenly throughout the 4th quarter of 20x1, Fiscal year 20x2 inventory purchases occurred evenly throughout fiscal year 20x2, and . • 12/31/20x2 ending inventory was incurred evenly throughout the 4th quarter of 20x2. Required A. Assuming VME Group's functional currency is the U.S. dollar, use the proper method to convert their cost of goods sold and ending inventory from LCUS to U.S. dollar equivalent for reporting in the Parent financial reports. B. Assuming VME Group's functional currency is the LCU, use the proper method to convert their cost of goods sold and ending inventory from LCUs to the U.S. dollar equivalent for reporting in the Parent financial reports.

Answer rating: 100% (QA)

A Particulars Inventory 112022 Purchases Total inventory Less Ending inventory Cost of g... View the full answer