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

Question

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

Quizplus · Accepted Answer

The Answer of 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

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