Big Ben, Ltd. is a British subsidiary of a U.S. company and prepares their annual financial...

Transcribed Image Text:

Big Ben, Ltd. is a British subsidiary of a U.S. company and prepares their annual financial statements on a calendar year basis. During the current year, Big Ben had purchases of £150,000, cost of goods sold of £165,000, beginning inventory of £90,000, and ending inventory of £75,000. Various spot rates for the current year are as follows: January 1 Date that the beginning inventory was acquired Weighted average rate for the current year December 31 Date that the ending inventory was acquired Big Ben's functional currency is the U.S. dollar. $1.55 = £1.00 $1.58 = £1.00 $1.60 = £1.00 $1.65= £1.00 $1.62 £1.00 What is the amount of Big Ben's cost of goods sold that will be included in the current year's consolidated income statement? Big Ben, Ltd. is a British subsidiary of a U.S. company and prepares their annual financial statements on a calendar year basis. During the current year, Big Ben had purchases of £150,000, cost of goods sold of £165,000, beginning inventory of £90,000, and ending inventory of £75,000. Various spot rates for the current year are as follows: January 1 Date that the beginning inventory was acquired Weighted average rate for the current year December 31 Date that the ending inventory was acquired Big Ben's functional currency is the U.S. dollar. $1.55 = £1.00 $1.58 = £1.00 $1.60 = £1.00 $1.65= £1.00 $1.62 £1.00 What is the amount of Big Ben's cost of goods sold that will be included in the current year's consolidated income statement?

Answer rating: 100% (QA)

Beginning Inventory 90000 x 158 142200 Purc... View the full answer