ABC Corporation has a beginning inventory of $50,000, purchases of $150,000, and sales of $200,000 during the year. The company uses the perpetual inventory system and a weighted average cost flow assumption. Calculate the following:

a) The cost of goods sold for the year.
b) The value of the ending inventory using the lower-of-cost-or-market (LCM) rule if the cost is $40,000 and the market value is $35,000.

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