E7-11 Reporting Inventory at Lower of Cost or Market [LO 7-4] Sandals Company is preparing the annual financial statements dated December 31. Ending inventoy information about the four major items stocked for regular sale follows Unit Cost Quantity When Acquire Market Value Product Line Air Flow Blister Buster Coolonite Dudesly on Hand (FIFO) at Year-End 45 105 29 40 $ 20 26 80 23 $ 18 28 85 18 Required: 1. Compute the amount that should be reported for the ending inventory using the LCM rule applied to each itemm Ending Inventory 2. How will the write-down of inventory to lower of cost or market affect the company's expenses reported for the year ended December 31? Cost of goods sold will be