A U.S. company’s foreign subsidiary had these amounts in local currency units (LCU) in 2020:

Cost of goods sold . . . . . . . . . . . . . . . . . . . . . LCU 5,000,000
Beginning inventory . . . . . . . . . . . . . . . . . . . .           500,000
Ending inventory . . . . . . . . . . . . . . . . . . . . . . .          600,000

The average exchange rate during 2020 was $1.00 = LCU 1. The beginning inventory was acquired when the exchange rate was $0.80 = LCU 1. Ending inventory was acquired when the exchange rate was $1.10 = LCU 1. The exchange rate at December 31, 2020, was $1.15 = LCU 1. Assuming that the foreign country is highly inflationary, at what amount should the foreign subsidiary’s cost of goods sold be reflected in the U.S. dollar income statement?

a. $4,440,000

b. $4,840,000

c. $5,000,000

d. $5,750,000