Read the case and solve using the relevant concepts of accounting. Show your solution(s).

Fashion Trend Ltd., a U.S. company has a subsidiary in Scotland named Trendy, Inc. Trendy presented data related to the cost of goods sold for the year ended December 31, 2019.

Inventory, 1/1/19			200,000
Purchases			700,000
Cost of Goods Available for sale			900,000
Inventory, 12/31/19			300,000
Exchange rates/
December 31, 2018	$0.56
December 31, 2019	$0.52
2019 average	$0.55

Using temporal method, determine what appropriate exchange rates to calculate the cost of goods sold amount that should be used in the preparation of the Consolidated Income Statement of Fashion Trend Ltd