E14-7 Inventory and Quarterly Reports Day Company, which uses the FIFO inventory method, had 254,000 units in inventory at the beginning of the year at a FIFO cost per unit of $30. No purchases were made during the year. Quarterly sales information and two sets of end-of-quarter replacement cost figures follow: End-of-Quarter Replacement Cost Quarter Unit Sales Case A Case B 1 100,000 $29 $25 2 30,000 22 27 3 42,500 18 19 4 30,500 22 27 The market decline in the first quarter under Case A was expected to be temporary, whereas under Case B the decline was expected to be nontemporary. Declines in other quarters were expected to be permanent. Required: Determine cost of goods sold for the four quarters under each case and verify the amounts by computing cost of goods sold using the lower-of-cost-or-market method applied on an annual basis