A Ltd is a South African company that sells computer equipment.
On 3 January 20.21 they ordered laptops for the amount of $20 000
from a company in the United States of America.
The inventories were shipped free on board (FOB) on 10 January 20.21.
The transaction is uncovered.
The laptops arrived in South Africa on 24 January 20.21.
The foreign creditor was paid on 10 March 20.21.
The financial year end of A Ltd is 28 February.
The inventory ordered on 3 January 20.21 will be recorded at the following
amount in the accounting records of A Ltd:
The Exchange Rates for 1USD$=R?
3 January 20.21
R14,65
10 January 20.21
R15,30
24 January 20.21
R15,13
28 February 20.21
R15,07
10 March 20.21
R15,16
a.
R293 000
b.
R306 000
c.
R302 600
d.
R301 400
e.
R303 200
The correct answer is b. R306 000
Calculation:
$20,000 * R15.30 = R306,000 (inventory recorded at the exchange rate on 10 January 20.21 when the inventories were shipped FOB)