Forge Company,a Calendar-Year Entity,had 6,000 Units in Its Beginning Inventory

question 16

Multiple Choice

Forge Company,a calendar-year entity,had 6,000 units in its beginning inventory for 2008.On December 31,2007,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 2008.The following additional information is provided for 2008:
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 year 2008,is:

• A)$2,080,000
• B)$1,880,000
• C)$1,835,000
• D)$1,910,000

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Definitions:

Spontaneous Recovery

The reappearance of a conditioned response after a period of lessened response.

Operant Conditioning

A technique for adjusting behavior by dispensing rewards for good actions or penalties for bad ones.

Delayed Conditioning

A classical conditioning process where the neutral stimulus is presented and followed by the unconditioned stimulus after a brief interval.

Monthly Reward

A regular incentive or benefit given once a month, often as recognition for achievements or maintained standards.