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

question 18

Multiple Choice

Forge Company,a calendar-year entity,had 6,000 units in its beginning inventory for 20X8.On December 31,20X7,applying the lower-of-cost-or-market (NRV) principle,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 (NRV) .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 first quarter is:

• A)$636,000
• B)$564,000
• C)$546,000
• D)$624,000

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Definitions:

Necessary Work

Tasks or jobs that must be completed for the operations of an organization or for the completion of a project.

Greatly Varying Education

Describes a wide range of educational backgrounds among individuals in a group or population.

Health Care Departments

Divisions within organizations dedicated to managing health services, policies, and practices.

Participative Management Style

A leadership approach where employees at all levels are involved in the decision-making processes of the organization.