Use the information on the U.S. dollar value of the New Zealand dollar to answer the following question(s).

Spot Rate

Forward Rate for

June 30, 2020 Delivery

March 28, 2020

$0.725

$0.730

May 2, 2020

0.732

0.735

June 28, 2020

0.750

0.750

On March 28, 2020, a U.S. company issues a purchase order to buy merchandise for NZ$100,000. The company will pay the supplier on June 28, 2020, so on March 28, the company enters a forward contract to purchase NZ$100,000 on June 28. The company takes delivery of the merchandise on May 2, 2020. On June 28, 2020, the company acquires NZ$100,000 using the forward contract and pays the supplier. The company sells the merchandise later in the year. The company's accounting year ends December 31.

When the merchandise is sold by the U.S. company, cost of goods sold is:

A. $73,000 B. $73,200 C. $72,700 D. $75,000