- UID
- 223346
- 帖子
- 483
- 主题
- 49
- 注册时间
- 2011-7-11
- 最后登录
- 2013-9-12
|
In the Qbank, there is a question on translating COGS using the temporal method (fyi Inventory in this example remained the same in the two periods). I was under the impression that you use the historical rate, however, the answer below seems to indicate that you want to use the average rate because inventory was unchanged? I'm a little confused....
Both the beginning and ending inventory under LIFO cost flow assumptions are translated at the $0.12 (historical) rate as of the date the original inventory was acquired, January 1, 2001. Because beginning and ending inventories expressed in Mexican pesos are equal, the purchases for the year will equal the Cost of Goods Sold, which is remeasured at the average cost of acquiring the goods during the year: $0.11. (45,000,000 |
|
发表于 2011-7-11 19:39
|