Doosan Enterprises, a U.S. subsidiary domiciled in South Korea, accounts for its inventories on a FIFO basis.

Question:

Doosan Enterprises, a U.S. subsidiary domiciled in South Korea, accounts for its inventories on a FIFO basis. The company translates its inventories to dollars at the current rate. Year-end inventories are recorded at 10,920,000 won. During the year, the replacement cost of inventories increases by 20 percent. Inflation and information are as follows:
January 1: Specific price index = 100;
$1 = KRW900
December 31: Specific price index = 120;
$1 = KRW1,170

Required:
Based on this information, calculate the dollar current-cost adjustment for cost of sales while avoiding a double-charge for inflation.

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...