,Stuff Company is a subsidiary of Pland Corporation and is located in Madrid, Spain, where the currency is the euro (€). Data on Stuff'sInventory and purchases are as follows:BookinterencesInventory, January 1, 20x71Purchases during 2007Inventory, December 31, 20x7€224,000849,000188,000The beginning inventory was acquired during the fourth quarter of 20X6, and the ending inventory was acquired during the fourthquarter of 20X7. Purchases were made evenly over the year. Exchange rates were as follows:Fourth quarter of 20x61-1.29015January 1, 20x71-1.320301Average during 20x71-1.39655Fourth quarter of 20071-1.45000December 31, 20x71-1.47280

Certainly, I can assist you with calculating the cost of Stuff Company's inventory and purchases…

Answered: , Stuff Company is a subsidiary of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Stuff Company is a subsidiary of Pland Corporation and is located in Madrid, Spain, where the currency is the euro (€). Data on Stuff’s inventory and purchases are as follows: Inventory, January 1, 20X7 € 230,000 Purchases during 20X7 858,000 Inventory, December 31, 20X7 183,000 The beginning inventory was acquired during the fourth quarter of 20X6, and the ending inventory was acquired during the fourth quarter of 20X7. Purchases were made evenly over the year. Exchange rates were as follows: Fourth quarter of 20X6 € 1 = $ 1.29015 January 1, 20X7 € 1 = $ 1.32030 Average during 20X7 € 1 = $ 1.39655 Fourth quarter of 20X7 € 1 = $ 1.45000 December 31, 20X7 € 1 = $ 1.47280 Required: Show the remeasurement of cost of goods sold for 20X7, assuming that the U.S. dollar is the functional currency. Note: Round your intermediate calculations and final answer to nearest dollar amount. Show the translation of cost of goods sold for 20X7, assuming that the euro is the…
Stuff Company is a subsidiary of Pland Corporation and is located in Madrid, Spain, where the currency is the euro (€). Data on Stuff's inventory and purchases are as follows: Inventory, January 1, 20X7 Purchases during 20x7 Inventory, December 31, 20x7 The beginning inventory was acquired during the fourth quarter of 20X6, and the ending inventory was acquired during the fourth quarter of 20X7. Purchases were made evenly over the year. Exchange rates were as follows: Fourth quarter of 20x6 January 1, 20X7 Average during 20x7 Fourth quarter of 20x7 December 31, 20x7 € 226,000 866,000 194,000 €1-$1.29015 €1$ 1.32030 € 1$ 1.39655 €1-$1.45000 € 1$ 1.47280 Required: a. Show the remeasurement of cost of goods sold for 20X7, assuming that the U.S. dollar is the functional currency. Note: Round your intermediate calculations and final answer to nearest dollar amount. a. Cost of goods sold b. Cost of goods sold b. Show the translation of cost of goods sold for 20X7, assuming that the euro is…
Austin Powers plc, the British subsidiary of a U.S. company reported cost of goods sold in Great Britain Pounds for the current year ended December 31. The beginning inventory was £18300, and the ending inventory was £15100. Purchases of £22600 were made evenly throughout the year. Spot rates for various dates are as follows: Date the beginning inventory was acquired Rate at the start of the year £1 = $1.11 £1 = $1.11 £1 = $1.14 £1 = $1.18 Average rate for the year Date the ending inventory was acquired Assume that the U.S.dollar is the functional currency of the British subsidiary. Given the facts above, the amount of cost of goods sold, restated in US $, that should appear in the consolidated income statement is: BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000. Your Answer:
Basil plc, the British subsidiary of a U.S. company reported cost of goods sold in Great Britain Pounds for the current year ended December 31. The beginning inventory was £18800, and the ending inventory was £13100. Purchases of £27600 were made evenly throughout the year. Spot rates for various dates are as follows: Date the beginning inventory was acquired Rate at the start of the year £1 = $1.11 £1 = $1.10 £1 = $1.14 £1 = $1.19 Average rate for the year Date the ending inventory was acquired Assume that the Great Britain Pound is the functional currency of the British subsidiary. Given the facts above, the amount of cost of goods sold, restated in US $, that should appear in the consolidated income statement is: BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000. Vour Answer:
The ABC sole proprietorship deals with the trade of IT items and the provision of related services. Carry out the adjustment entries of the accounts for the fiscal year 20X6 as well as those for the determination of the gross profit taking into account the following information: For the accounting of inventories, the company applies a periodic inventory and evaluates the inventories using the weighted average cost method. The company trades the kind P. The initial inventory consists of 20 units with a purchase price of € 50 per unit. In the fiscal year, 20X6 bought 80 units for € 55 per unit and 80 units for € 60 per unit. In the inventory of 31/12/20X6, the stocks in the warehouse consist of 30 units whose liquidation price amounts to € 55 per unit. Total gross merchandise sales amounted to €45,000 and sales returns to €400. During the 20x6 fiscal year, the company had purchased $1,000 at a $200 exchange rate= € 1. On 31/12/20X6, the current USD exchange rate is $1 =€ 1.2. The…
Assume that Merryland’s Markets had an inventory balance of $32 570 at the close of the last accounting period. The following sales and purchase transactions are for the current period. NOTE: GST at 10% is included in the amount where applicable. 1. 2. 3. 4. Purchased goods on account for $29,909. Returned part of the above purchase that had an original invoice price of $1,749. Paid for the balance of the purchase in time to receive a discount of 2% of the invoice price. Sold goods on account costing $24 900 for an invoice price of $54 802. Required (a) Prepare general journal entries assuming the perpetual inventory system is used. (b) Suppose that a physical count of the inventory at the end of the current period shows inventory of $30,420 to be on hand. Present the entries (if any) required to adjust for any discrepancy.
Accounting Woody Ltd sold inventory items to its subsidiary Buzz Lightyear Ltd and had the following intercompany transactions: Cost of inventory $600 000 sold for $750 000 for the year ended 30 June 2022. One third of the inventory items were sold by Buzz Lightyear Ltd to external parties before the financial year end 30 June 2022. Cost of inventory $200 000 sold for $150 000 for the year ended 30 June 2023. Half of the inventory items were sold by Buzz Lightyear Ltd to external parties before the financial year end 30 June 2023. Ignoring taxes, which of the following statements is correct with respect to this transaction only for the year ended 30 June 2023 А. Consolidated sales will decrease by $200 00 В. Consolidated sales will increase by $550 000 C. Consolidated profit will increase by $125 000. D. Consolidated profit will increase by $24 000 B.
Esposito is an Italian subsidiary of a U.S. company. Esposito’s ending inventory is valued at the average cost for the last quarter of the year. The following account balances are available for Esposito for 2021: Beginning inventory € 20,000 Purchases € 400,000 Ending inventory € 15,000 Relevant exchange rates follow: 4th quarter average, 2020 $ 0.93 = € 1 December 31, 2020 0.94 = € 1 Average for 2021 0.96 = € 1 4th quarter average, 2021 0.99 = € 1 December 31, 2021 1.01 = € 1 Compute the cost of goods sold for 2021 in U.S. dollars using the temporal method.
LM ltd has the following products in inventory at the year end. Product Quantity Cost Selling price Selling cost X 1,000 GHS40 GHS55 GHS8 Y 2,500 GHS15 GHS25 GHS4 Z 800 GHS23 GHS27 GHS5 At what amount should total inventory be stated in the statement of financial position?
Fujitsu Ltd purchases inventory from DFO Ltd, a listed British company. Relevant events and the spotrates at each date are shown as follows:Date Event Spot rate15 March 2019 Order £300,000 of inventory A$1.00 = £0.3711 May 2019 Purchase takes place as inventory shipped to Fujitsu Ltd(FOB)A$1.00 = £0.4130 June 2019 End of financial year A$1.00 = £0.4302 July 2019 Inventory arrives at warehouse A$1.00 = £0.4214 August 2019 Payment of £300,000 to supplier A$1.00 = £0.39Required:a) Prepare appropriate journal entries for each relevant event. (Round amounts to thenearest dollar). Show your working.b) What is a qualifying asset? Provide two (2) example
Fujitsu Ltd purchases inventory from DFO Ltd, a listed British company. Relevant events and the spotrates at each date are shown as follows:Date Event Spot rate15 March 2019 Order £300,000 of inventory A$1.00 = £0.3711 May 2019 Purchase takes place as inventory shipped to Fujitsu Ltd(FOB)A$1.00 = £0.4130 June 2019 End of financial year A$1.00 = £0.4302 July 2019 Inventory arrives at warehouse A$1.00 = £0.4214 August 2019 Payment of £300,000 to supplier A$1.00 = £0.39Required:a) Prepare appropriate journal entries for each relevant event. (Round amounts to thenearest dollar). Show your work.b) What is a qualifying asset? Provide two (2) examples.
Fujitsu Ltd purchases inventory from DFO Ltd, a listed British company. Relevant events and the spotrates at each date are shown as follows:Date Event Spot rate15 March 2019 Order £300,000 of inventory A$1.00 = £0.3711 May 2019 Purchase takes place as inventory shipped to Fujitsu Ltd(FOB)A$1.00 = £0.4130 June 2019 End of financial year A$1.00 = £0.4302 July 2019 Inventory arrives at warehouse A$1.00 = £0.4214 August 2019 Payment of £300,000 to supplier A$1.00 = £0.39Required:a) Prepare appropriate journal entries for each relevant event. show your working

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