Campbell Inc. regularly buys materials in Argentina for use in its Canadian manufacturing facility. During 2013, Campbell made two acquisitions, one on February 1, 2013, and another on November 1, 2013, each for 10,000 units at 500 Argentine pesos (ARS) each. At year end there are 12,000 units remaining. The net realizable value at year end is 510 ARS per unit. None of the purchases had been paid for by the year end December 31, 2013. The following exchange rates exist for 2013: February 1, 2013 …….. ARS 1 = C$.231 November 1, 2013 …… ARS 1 = C$.240 December 31, 2013 …… ARS 1 = C$.229 Required (a) Prepare the journal entries for 2013 (assume the weighted average method of costing inventory). (b) Indicate the foreign currency effect on the comprehensive income statement for the year ending December 31, 2013. (c) Indicate the inventory and accounts payable balances on the statement of financial position as at December 31, 2013.
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