Purr Company's ending inventory was $106,700 at cost and $113,500 at replacement cost. Before consideration of the lower-of-cost-or-market rule, the company's cost of goods sold was $60,000. Which of the following statements reflect the correct application of the lower-of-cost-or-market rule? The Ending Inventory balance will be $106,700, and Cost of Goods Sold will be $60,000. The Ending Inventory balance will be $113,500, and Cost of Goods Sold will be $60,000. The Ending Inventory balance will be $106,500, and Cost of Goods Sold will be $66,800. The Ending Inventory balance will be $113,500, and Cost of Goods Sold will be $53,200.