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On April 1, a company purchased two units of inventory, A and B. The cost of unit A was $650, and the cost of unit

On April 1, a company purchased two units of inventory, A and B. The cost of unit A was $650, and the cost of unit B was $625. On April 30, the company had not sold the inventory. The net realizable value of unit A was now $685 while the net realizable value of unit B was $550. Find the adjustment associated with the lower cost and net realizable value on April 30.

1.Cost of Goods Sold40
Inventory40
2.Inventory40
Cost of Goods Sold40
3.Cost of Goods Sold75
Inventory75
4.Inventory75
Cost of Goods Sold75

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