Cub Company, a calendar-year entity, had 2,400 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 $1,020 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:

Quarter	Date	Inventory (units)			Unit Market Value
1	March 31, 20X1		1,710			$	875
2	June 30, 20X1		1,440				920
3	September 30, 20X1		1,330				830
4	December 31, 20X1		980				860

Required: Respond to the following two independent scenarios as requested. a. Case 1: The company does not have sufficient experience with the seasonal market for geothermal 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

I

II

III

IV