A Foreign Subsidiary Uses the First-In First-Out Inventory Method

Multiple Choice

A foreign subsidiary uses the first-in first-out inventory method. The following inventory balances are given at December 31, 2021 in local currency units (LCU) : The following exchange rates are given for 2021: Compute the December 31, 2021, inventory balance using the lower of cost or net realizable value method under the temporal method.

A) $321,000.
B) $457,600.
C) $596,400.
D) $454,400.
E) $419,000.