E7-12 Reporting Inventory at Lower of Cost or Market/Net Realizable Value (LO 7.4) Sandals Company is preparing the annual financial statements dated December 31. Ending inventory is presently recorded at its total cost of $10,250. Information about its inventory items follows: Quantity Product Line Acquired (FIFO) 25 $92 Unit Cost When on Hand Value at Year-End Air Flow Blister Buster Coolonite Dudesly 590 80 20 90 15 70 60 76 Required: 1. Compute the LCM/NRV write-down per unit and in total for each item in the table. Also compute the total overall write-down for all 2. How will the write-down of inventory to lower of cost or marketet realizable value affect the company's expenses reported for the year ended December 31? 3. Compute the amount that should be reported for the inventory on December 31, after the LCM/NRV rule has been applied to each items. item 25 points Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the LCM/NRV write-down per unit and in total for each item in the table. Also compute the total overall write-down for all items. Write- Quantity Total Product Line on Hand Write per item down Air Flow 25 $ (67) $ 2,300 Blister Buster 15 (61) 1.140 Coolonite 70 57 910 Dudesly 60 (36) 5.760 Total S 10.110 Required Required 2 > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How will the write-down of inventory to lower of cost or marketet realizable value affect the company's expenses reported for the year ended December 31? Cost of goods sold will be Increased 10,110 (Required 1 Required 3 > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 2 Required 1 Required 3 Compute the amount that should be reported for the inventory on December 31, after the LCM/NRV rule has been applied to each item. Written-down inventory 10,2503 (Required 2