Pat and Company's Ending Inventory at Cost)was $87,500

Pat and Company's ending inventory at cost) was $87,500. The company would have had to pay $100,000 to replace the ending inventory. 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 LCM rule?

A) The Ending Inventory balance will be $87,500, and Cost of Goods Sold will be $60,000.
B) Ending Inventory balance will be $100,000, and Cost of Goods Sold will be $72,500.
C) The Ending Inventory balance will be $87,500, and Cost of Goods Sold will be $72,500.
D) The Ending Inventory balance will be $100,000, and Cost of Goods Sold will be $72,500.