If you are told inventory is remeasured at a certain rate do you automatically assume that COGS is remeasured at the same rate? For example, you’re told inventory is remeasured at .50. The average rate is .55. Would you remeasure COGS at .55 or .50?
Guessing: Use 50. Wouldnt it depend on the FIFO/ LIFO??? If FIFO use 50, IF LIFO and you purchased steadily throughout the year use 55 IF LIFO with no purchases during the year use 50
i dono been trying to figure this out for the past year
Do not translate Cogs at same rate as Inventory. Its just like june said. Cogs are the inventory you sold, inventory is whats left. they were bought at different times (different FX rates)