What amount should inventory be reported


Meisner Co. ordered parts costing §100,000 for a foreign supplier on May 12 when the spot rate was $.24 per stickle. A one-month forward contract was signed on that date to purchase §100,000 at a forward rate of $.25 per stickle. On June 12, when the parts were received and payment was made, the spot rate was $.28 per stickle. At what amount should inventory be reported?

a. $0

b. $2,000

c. $24,000

d. $28,000

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Accounting Basics: What amount should inventory be reported
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