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 $7,500. Information about its inventory items follows: Quantity Unit Cost When Acquired Value at Year- Product Line Air Flow on Hand 95 (FIFO) $25 End $ 31 Blister Buster 15 70 65 Coolonite Dudesly 15 45 43 85 40 48 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. 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. Product Line Quantity on Hand Write-down per item Air Flow 95 Blister Buster 15 Coolonite 15 Total Write- down Dudesly Total 85