Forge Company, a Calendar-Year Entity, Had 6,000 Units in Its

question 44

Multiple Choice

Forge Company, a calendar-year entity, had 6,000 units in its beginning inventory for 20X8. On December 31, 20X7, the units had been adjusted down to $470 per unit from an actual cost of $510 per unit. It was the lower of cost or market. No additional units were purchased during 20X8. The following additional information is provided for 20X8: Forge does not have sufficient experience with the seasonal market for its inventory units and assumes that any reductions in market value during the year will be permanent.
Based on the preceding information, the cost of goods sold for the second quarter is:

• A) $416,000
• B) $364,000
• C) $304,000
• D) $424,000

---

Definitions:

Individuals' Understanding

The unique comprehension or perception that a person has towards particular concepts, situations, or phenomena based on their knowledge and experiences.

Biographies

Written accounts of individual lives, showcasing personal and professional experiences.

Class Conflict

The strain or conflict arising in society from the contrasting economic interests and aspirations among individuals of diverse social classes.

Twentieth-century

Referring to the period from 1901 to 2000, marked by significant technological, political, and cultural changes worldwide.