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 inventory information about the four major items stocked for regular sale follows Quantity Unit Cost When Market Value on Hand Acquired (FIFO) Product Line Air Flow Blister Buster Coolonite Dudesly 20 75 35 10 at Year-End $14 38 50 35 $12 40 30 Required: 1. Compute the amount that should be reported for the ending inventory using the LCM rule applied to each itenm Ending Invento 2. How will the write-down of inventory to lower of cost or market affect the company's expenses reported for the vear ended December 31? Cost of goods sold will be