A U.S. company's foreign subsidiary had these amounts in local currency units (LCU) in 2024:
The average exchange rate during 2024 was $1.10 = LCU 1. The beginning inventory was acquired when
the exchange rate was $1.00 = LCU 1. Ending inventory was acquired when the exchange rate was $1.18 =
LCU 1. The exchange rate at December 31, 2024, was $1.25 = LCU 1. Assuming that the foreign country is
highly inflationary, at what amount should the foreign subsidiary's cost of goods sold be reflected in the U.S. dollar income statement?