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Step by step how to do part b of this question.

Problem Statement

The Year 1 financial statements of the Brazilian subsidiary of Artemis Corporation (a Canadian company) revealed the following:

Brazilian reals (BRL)

Beginning inventory  . . . . . . . . . . . . . . . . . . . . . . . . .         100,000

Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         500,000

Ending inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . .          150,000

Cost of goods sold  . . . . . . . . . . . . . . . . . . . . . . . . . .         450,000

Canadian dollar (C$) exchange rates for 1 BRL are as follows:

January 1, Year 1  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C$0.45

Average, Year 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      0.42

December 31, Year 1  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    0.38

The beginning inventory was acquired in the last quarter of the previous year, when the exchange rate was C$0.50 = BRL 1; ending inventory was acquired in the last quarter of the current year, when the exchange rate was C$0.40 = BRL 1.

Assuming that the temporal method is the appropriate method of translation, determine the amounts at which the Brazilian subsidiary’s ending inventory and cost of goods sold should be included in Artemis’s Year 1 consolidated financial statements.

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