On January 1, the wholly- owned Mexican affiliate of a Canadian percent company acquired an inventory of computer hard drives for its assembly operation. The cost incurred was 718000 pesos when the exchange rate was MXN 10.9=C$1. By year-end, the Mexican affiliate had used three-fourths of the acquired hard drives. Due to advance in hardware technology, the remaining inventory was marked down to its net realizable value of MXN 35000. The year-end exchange rate was MXN 10.8 = C$1. The average rate during the year was MXN 11.5 = C$1. Translate the ending inventory to Canadian dollars assuming the Mexican affiliate's functional currency is the Canadian dollar

On January 1, the wholly- owned Mexican affiliate of a Canadian percent company acquired an inventory of computer hard drives for its assembly operation. The cost incurred was 718000 pesos when the exchange rate was MXN 10.9=C$1. By year-end, the Mexican affiliate had used three-fourths of the acquired hard drives. Due to advance in hardware technology, the remaining inventory was marked down to its net realizable value of MXN 35000. The year-end exchange rate was MXN 10.8 = C$1. The average rate during the year was MXN 11.5 = C$1. Translate the ending inventory to Canadian dollars assuming the Mexican affiliate's functional currency is the Canadian dollar

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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14. On January 1, the wholly- owned Mexican affiliate of a Canadian percent company acquired an inventory of computer hard drives for its assembly operation. The cost incurred was 384000 pesos when the exchange rate was MXN 10.7=C$1. By year-end, the Mexican affiliate had used three-fourths of the acquired hard drives. Due to advance in hardware technology, the remaining inventory was marked down to its net realizable value of MXN 39000. The year-end exchange rate was MXN 10.6 = C$1. The average rate during the year was MXN 10.9 = C$1.Translate the ending inventory to Canadian dollars assuming the Mexican affiliate’s functional currency is the Mexican peso
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