Kaplan stated in their notes;
“Under LIFO, ending inventory consists of older costs; thus, the inventory is remeasured at older exchange rates. LIFO CO GS, however, consists of costs from the most recently purchased goods; thus, COGS is remeasured based on more recent exchange rates.”
My Q is, under income statment the exchange rate that we use for COGS the average exchange or the current exchange rate?
From the pargraph mentioned above they said “COGS is remeasured based on more recent exchange rates”, but we don’t use at all current exchange rate for income stament for either Temporal or current method.