A U.S. company’s foreign subsidiary had these amounts in foreign
currency units (FCU) in 2015:

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Question: A U.S. company’s foreign subsidiary had these amounts in foreign currency units (FCU) in 2015: …
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  Cost of goods
sold
FCU 13,000,000
  Ending
inventory
340,000
  Beginning
inventory
240,000

The average exchange rate during 2015 was $2.30 = FCU 1. The
beginning inventory was acquired when the exchange rate was $2.50 =
FCU 1. Ending inventory was acquired when the exchange rate was
$2.25 = FCU 1. The exchange rate at December 31, 2015, was $2.20 =
FCU 1. Assuming that the foreign country is highly inflationary, at
what amount should the foreign subsidiary’s cost of goods sold be
reflected in the U.S. dollar income statement?

$29,680,000.

$29,795,000.

$29,965,000.

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