Cub Company, a calendar year entity, had 3,000 geothermal heating pumps in its beginning inventory for 20X1. On December 31, 20x0, the heating pumps had been adjusted down to $890 per unit from an actual cost of $1.010 per unit. It was the lower of cost or market Cub purchased no additional units during 20X1. The following additional information is provided for 20x1: Teventory Unit Market Quarter Date (unit) Value March 31, 20x1 1.720 105 June 30, 20X1 1.470 900 3 September 1, 201 1,500 December 31, 20x1 53 30 1 020 Required: Respond to the following two independent scenarios as requested a Caset The company does not have sufficient experience with the seasonal market for peothermal pumps and assumes that any reductions in market value during the year will be permanent (1) Determine the cost of goods sold for each quarter Quarter Cost of goods Sold 1 5 1.147.800 213.900 IV Total $ 1361.700 (2) Verify the total cost of goods sold by computing annual cost of goods sold on a lower-of-cost-or-market basis. Cost of good old b. Case 2 The company has prior experience with the seasonal market for geothermal pumps and expects that any reductions in market value during the year will be only temporary and will recover by year-end. (1) Determine the cost of goods sold for each quarter Quarter Cost of goods sold 1 011 IV Total $ (2) Verify the total cost of goods sold by computing annual cost of goods sold on a lower-of.com or market basis Cost of yoods sold