Shopwell is a U.K. grocery chain that is a subsidiary of Premium Products, a U.S....
90.2K
Verified Solution
Link Copied!
Question
Accounting
Shopwell is a U.K. grocery chain that is a subsidiary of Premium Products, a U.S. company. Premiums fiscal year ends January 31. On February 1, 2018, Shopwells inventory balance consisted of 100,000 purchased when the exchange rate was $1.20/, and 300,000 purchased when the exchange rate was $1.23/. Shopwell made purchases of 5,000,000 evenly throughout fiscal 2019, and its inventory on January 31, 2019, consisted of 350,000 purchased when the exchange rate was $1.29/. Shopwells sales of inventory occurred relatively evenly throughout fiscal 2019. The average exchange rate for fiscal 2019 was $1.26/, and the January 31, 2019, exchange rate was $1.30/.
Required
a. Assume that Shopwells functional currency is the pound. Calculate Shopwells translated ending inventory at January 31, 2019, and its translated cost of sales for fiscal 2019.
b. Now assume that Shopwells functional currency is the U.S. dollar. Calculate Shopwells remeasured ending inventory at January 31, 2019, and its remeasured cost of sales for fiscal 2019.
a. Translated
b. Remeasured
Ending Inventory
?
?
Cost Of sales
?
?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
