. Dongguk Industry, adopting Perpetual Inventory recording system, recorded two inventory

layers by the end of June 30:

• 100 units unit cost $20 (purchased on June 25) .
• 80 units unit cost $22

Dongguk Industry physically counted to identify 175 units and Net Realiable Value is valued at $19 per unit. If the company uses FIFO cost flow assumption, what are the inventory shrinkage loss and inventory valuation loss?

a. Inventory shrinkage loss: $100, Inventory valuation loss: $335

b. Inventory shrinkage loss: $95, Inventory valuation loss: $340

c. Inventory shrinkage loss: $105, Inventory valuation loss: $330

d. Inventory shrinkage loss: $110, Inventory valuation loss: $325