E7-14 (Algo) 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 $12,050. Information about its inventory items follows: Product Line Air Flow Quantity on Hand 45 Blister Buster 20 Coolonite Dudesly 90 50 Unit Cost When Acquired (FIFO) $ 20 40 65 90 Value at Year-End $ 27 34 59 98 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 market/net 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.