I was watching the Schweser Videos for the Temporal method transalation where Jon Bone makes an adjustment for the rate to be used for COGS. However, in the material, the historic rate is applied.
The transformation used is:
Beginning Inventory + Purchases - Ending Inventory = COGS
Using the historic rates for BI & Inventory and Avg Rate for Purchases, a ‘plug’ value for COGS translation rate is arrived at.
What is the correct rate to be used for the COGS translation?