The Year 2015 financial statements of the Russian subsidiary of Globe Corporation (a German company) revealed...

 

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The Year 2015 financial statements of the Russian subsidiary of Globe Corporation (a German company) revealed the following: Russian Ruble Beginning Inventory. $480,000 Purchases .... 360,000 Ending Inventory. Cost of Goods Sold 240,000 600,000 Euro dollar (€):1 Ruble €$ 0.38 January 1, 2015 . Average, 2015.. December 31, 2015 . 0.26 0.32 The beginning inventory was acquired in 4th quarter of the previous year when exchange rate was €$0.45 = 1 Ruble; ending inventory was acquired in 4th quarter of 2015 when exchange rate was €$0.36 = 1 Ruble. 20) Required: Assuming the current rate method is the appropriate method of currency translation, determine the amounts at which the Russian subsidiary's ending inventory and cost of goods sold should be included in Globe's Year 2015 consolidated financial statements. Your response: Ruble Exchange Rate Euro 21) Required: Assuming the temporal method is the appropriate method of currency translation, determine the amounts at which the Russian subsidiary's ending inventory and cost of goods sold should be included in Globe's Year 2015 consolidated financial statements. Your response: Ruble Exchange Rate Euro The Year 2015 financial statements of the Russian subsidiary of Globe Corporation (a German company) revealed the following: Russian Ruble Beginning Inventory. $480,000 Purchases .... 360,000 Ending Inventory. Cost of Goods Sold 240,000 600,000 Euro dollar (€):1 Ruble €$ 0.38 January 1, 2015 . Average, 2015.. December 31, 2015 . 0.26 0.32 The beginning inventory was acquired in 4th quarter of the previous year when exchange rate was €$0.45 = 1 Ruble; ending inventory was acquired in 4th quarter of 2015 when exchange rate was €$0.36 = 1 Ruble. 20) Required: Assuming the current rate method is the appropriate method of currency translation, determine the amounts at which the Russian subsidiary's ending inventory and cost of goods sold should be included in Globe's Year 2015 consolidated financial statements. Your response: Ruble Exchange Rate Euro 21) Required: Assuming the temporal method is the appropriate method of currency translation, determine the amounts at which the Russian subsidiary's ending inventory and cost of goods sold should be included in Globe's Year 2015 consolidated financial statements. Your response: Ruble Exchange Rate Euro

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