[thebusyone]

Hi friends,

Quick question about the foreign exchange rate used to remeasure the CGS account.

I’m using Becker 2011. Page F2-59 says to use the historical rate when remeasuring CGS because it has a related balance sheet account (inventory), but page F2-62 shows an example and uses the weighted-average rate.

Which exchange rate should I use to remeasure CGS?

Any help would be greatly appreciated!

______________________
BEC - 4/4/11 - 83
REG - 1/4/12 - 82
AUD - 2/18/12 - 77
FAR - 5/31/12 ? 88
Ethics - 6/13/12 - 95

[Onmyway82]

I actually just finished that Chapter, and it stumped me when I was studying FAR before. But this time I figured it out. It's because of the 3rd Fact in the Example. It says that inventory was acquired evenly throughout the year, so that is why they used the weighted average rate in this example for Inventory and COGS. So normally the Inv/COGS would use the historical rate just like Fixed Assets/Depreciation do in the example.

FAR- 70, 68, 90
AUD- 72, 85
REG- 74, 83
BEC- 81
ETHICS- 90

CA CPA
CMA

[Dwill2nd]

WOW! I've been lurking on this site for awhile as I prepared to begin my commitment to passing the CPA exam. How great this site is as this very specific question had me stumped. Came here, searched, and got the exact answer I needed! Best site ever…. Feel great going back to my material now.

AUD - 98
BEC - 84
FAR - 94
REG - 86

No more procrastinating!

AUD - 98 - 3.9.17
BEC - 84 - 6.8.16
FAR - 94 - 2.22.17
REG - 86 - 5.23.17

August 2017 - Official CPA?!!!!!

Bec, 6/8/2016 - 84!
Far, 7/12/2016
Reg,
Aud,

[Author]

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