On April 1, a company purchased two units of inventory, A and B. The cost of unit A was $620, and the cost of unit B was $575. On April 30, the company had not sold the inventory. The net realizable value of unit A was now $640 while the net realizable value of unit B was $495. The adjustment associated with the lower of cost and net realizable value on April 30 will be: 1. Cost of Goods Sold 60 Inventory 60 2. Inventory 60 Cost of Goods Sold 60 3. Cost of Goods Sold 80 Inventory 80 4. Inventory 80 Cost of Goods Sold 80