Calculate dollar current-cost adjustment for cost of sales

Assignment Help Financial Accounting
Reference no: EM131051402

Doosan Enterprises

Doosan Enterprises, a U.S. subsidiary domiciled in South Korea, accounts for its inventories on a FIFO basis. The company translates its inventories to dollars at the current rate. Year-end inventories are recorded at 10,920,000 won. During the year, the replacement cost of inventories increases by 20 percent. Inflation and exchange rate information are as follows:

January 1: Specific price index = 100;

$1 = KRW900

December 31: Specific price index = 120;

$1 = KRW1,170

Required:

Based on this information, calculate the dollar current-cost adjustment for cost of sales while avoiding a double-charge for inflation.

Reference no: EM131051402

Questions Cloud

Set arguments indicating that firm independence impaired : For each case, you are to: Set forth arguments indicating that the firm's independence has not been impaired. Set forth arguments indicating that the firm's independence has been impaired
Type of fuel should you mix : Suppose a car can run on ethanol and gas and you have a 15 gallons tank to fill. You can buy fuel that is either 30 percent ethanol or 80 percent ethanol. How much of each type of fuel should you mix so that the mixture is 40 percent ethanol?
Determining the pounds of a mixture : A store owner wants to mix cashews and almonds. Cashews cost 2 dollars per pound and almonds cost 5 dollars per pound. He plans to sell 150 pounds of a mixture. How many pounds of each type of nuts should be mixed if the mixture will cost 3 dollar..
Finance and select six stocks for your portfolio : Visit MSN Money or Yahoo! Finance and select six stocks for your portfolio-three from the NYSE and three from the NASDAQ. Track the stocks daily for three weeks using the graphs provided on the websites to see how market trends and information aff..
Calculate dollar current-cost adjustment for cost of sales : Based on this information, calculate the dollar current-cost adjustment for cost of sales while avoiding a double-charge for inflation.
What differentiates accession from confusion : When may an appellate court overturn a trial court decision? What are the appropriate formal names of the parties when a case has been appealed? Are many trial court decisions overturned because the appellate court questions the findings of fact o..
Describe the effects of paralysis on the skeleton : Following a severe spinal cord injury in the lumbar region, the voluntary muscles of the legs and hips will be paralyzed. Describe the effects of paralysis on the skeleton.
Can you help me access on this step : Open the Main Menu form in Design view. Add three buttons below the Forms label that will open the three forms in the database: Enter Customers, Enter Employees, and Enter Suppliers (in that order and to show all records).
Classifications of mergers are horizontal and vertical : Four economic classifications of mergers are (1) horizontal, (2) vertical, (3) conglomerate, and (4) congeneric. Explain the significance of these terms in merger analysis with regard to (a) the likelihood of governmental intervention and (b) possibi..

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is maturity value of interest payable yearly

Purchases land having a fair value of $3000000 by issuing a 5 year, zero interest bearing promissory note in the face amout of $505,518. Pirchases equiemr by issuing a 6% 8 year promissory note having a maturity value of $400,0oo interest payable ye..

  Should tan use the new material

Should Tan use the new material? Show your calculations and what nonfinancial and qualitative factors should Tan consider in making the descision.

  Prepare a schedule of expected cash collections

Prepare a schedule showing expected cash disbursements for merchandise purchases and selling and administrative expenses for each of the months October, November, and December. (Omit the "$" sign in your response.)

  The capital projects fund was terminated

The unjustified portion of the grant was refunded to the state the remaining cash was transferred to the General Fund, and the Capital Projects Fund was terminated

  Explain how do webusiness people and as a society

After all, we live in a society where the norm is to 'have someone's back' and to not 'rat out someone'. Explain how do we, as businesspeople and as a society, overcome the loss of trust many feel toward whistle-blowers?

  Calculate the investment net present value

b. Calculate the investment's net present value at each of the following discount rates: 0%, 5%, 10%,20%, 25%, 30%, 35%.c. What does your answer to part b tell you about this project's IRR?

  Kim is determining her retirement plan consider she has

kim is determining her retirement plan. consider she has 500000 when she retires in an account that earns at an

  Reflect the assumed transactions of a sole proprietorship

Reflect the assumed transactions of a sole proprietorship for each of twelve months and prepare books of accounts for each of the month then balance the accounts on quarterly basis and prepare the: Quarterly trial balances;

  Prepare the consolidated statement of cash flows

Prepare the consolidated statement of cash flows of the Huihui Ltd group for the year ended 30 June 2012 in accordance with AASB107, using the direct method. Include a note that reconciles profit with cash flows from operating activities. Show al..

  Reduced material waste

This machine would replace six welders at a cost savings of $120,000 per year. And we would save another $8,100 per year in reduced material waste. When you figure that the automated welder would last for six years, I'm sure the return would be great..

  What is the present value of the offer

Each year he will receive a bonus equal to 10 percent of his salary. Mr. Adams is expected to work for 25 years. What is the present value of the offer if the discount rate is 12 percent?

  Determine receivables turnover ratio and average days sales

Determine the receivables turnover ratio and average days sales in receivables for the current year and explain the meaning of each number.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd