Asubsidiary of porter inc., a u. s. company, was located in a foreign country. the functional currency of this subsidiary was the stickle (§), the local currency where the subsidiary is located. the subsidiary acquired inventory on credit on november 1, 2012, for §120,000 that was sold on january 17, 2013 for §156,000. the subsidiary paid for the inventory on january 31, 2013. currency exchange rates between the dollar and the stickle were as follows:
november 1, 2012 $.19 = §1
december 31, 2012 $.20 = §1
january 1, 2013 $.22 = §1
january 31, 2013 $.23 = §1
average for 2013 $.24 = §1
what amount would have been reported for this inventory in porter's consolidated balance sheet at december 31, 2012?
a. $24,000.
b. $26,400.
c. $22,800.
d. $27,600.
e. $28,800.

Joint cost cheyenne, inc. produces three products from a common input. the joint costs for a typical quarter follow: direct materials $45,000 direct labor 55,000 overhead 60,000 the revenues from each product are as follows: product a $75,000 product b 80,000 product c 30,000 management is considering processing product a beyond the split-off point, which would increase the sales value of product a to $116,000. however, to process product a further means that the company must rent some special equipment costing $17,500 per quarter. additional materials and labor also needed would cost $12,650 per quarter. a. what is the gross profit currently being earned by the three products for one quarter? $answer b. what is the effect on quarterly profits if the company decides to process product a further? $answer