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 Sold	40
	Inventory		40
2.	Inventory	40
	Cost of Goods Sold		40
3.	Cost of Goods Sold	75
	Inventory		75
4.	Inventory	75
	Cost of Goods Sold		75

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