E7-14 (Static) 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 Coolonite Dudenly Quantity on Hand 20 75 35 20 Unit Cost When Required (FIFO) $12 40 55 30 Value at Year-End S14 38 50 35 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 317 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 Write-down Total Write- per item down Air Flow Blister Buster Coolonite Dudesly Total Quantity on Hand 20 75 35 10 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 317 Cost of goods sold will be by Complete this question by entering your answers in the tabs below. 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