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 $5,465. Information about its inventory items follows: Product Line Air Flow Blister Buster Goolonite Dudes ly Quantity on Hand 2e 75 35 10 Unit Cost When Acquired (FIFO) $12 40 55 30 Value at Year-End $14 38 50 35 Required: 1. Compute the LCM/NRV write-down per unit affd 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 LCM/NRV rule has been applied to each item. Required 1 Required 2 Required 3 Compute the LCM/NRV write-down per unit and in total for each item for all items. + Product Line Write-down Quantity on Hand 20 Total Write- down per item Air Flow Blister Buster 75 35 Coolonite Dudesly Total 10 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 for the year ended December 31? Cost of goods sold will be by 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 applic each item. Written down inventory