KLM Company is preparing the annual financial statements dated December 31, 2020. Unit Cost Question 4: Item Quantity on Hand A 150 B 200 C 120 D 140 When Acquired $30 55 70 50 Market Value at year end 159 3155 $21 0503 400 52 11000 18480 53 8400 6360 65 7004 3100 2.100 a) Compute the valuation for the December 31, 2020, inventory using the lower-of-cost-or-market value basis and make necessary adjusting journal entries. b) Sold 25 units of A for $28 in cash and 10 units of D for $45 each in cash and 5 unites of C was written-off. Make necessary journal entries. 10010 ARC Co. reported the following information on its Balance Sheet: