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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

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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 $10,825. Information about its inventory items follows Quantity on and Unit Cost When Acquired (FIFO) $50 Value at Year-End Product Line Ar Flow Blister Buster Colonite Dudesly 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 items 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 LCMINRV rule has been applied to each Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the LCMNRV write down per unit and in total for each item in the table. Also compute the total overall write-down Product Line Quantity on Write down peritom to down. ArFlow Required 1 Required 2 Required 3 Compute the LCM/NRV write-down per unit and in total for each item in the table. Also comput for all items. Product Line Total Write- down Air Flow Blister Buster Coolonite Dudesly Total Quantity on Write-down Hand per item 55 75 85 9 5 & Required 2 > 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 Required 1 Required 2 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 NEQUE NEL 2 NYUDOS 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 Required 1 Required 2 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

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