Sanchez Company was formed on January 1 of the curient year and is peepering the annual fnancial statements dated December 31 curtent yoar: Ending inventery information about the four mijor items stocked for regular sase folows: Pequired: 1. Compute the vikution that should be used for the curfent year ending inventery using lower of cost of net realzabie value asoled on an tem by item bstis. 2. What will be the effect of the welte-down of iniventory to lower of cout oe net realieable vakie an cost of goods soid for the year ended December 11, curent year? Cemplete this question by entering your answers in the tabs below. Compute the valuatias that thould be used for the currem year ensing invertory using bwer of cost or net realratie vatut scelied on an item-by-tem basks. Sancher Compary was formed on January 1 of the current year and is preparing the annual financial statements deted December 3 , curtent year. Ending inventary information about the four major items stocked for tegalar sale follows: Required: 1. Compute the valuation that thould be used for the curfent year enting imvemary using lower of cour or net fealicatie velue eppied on an hem. by - hem besis. 2. What wili be the eflect of the wrine-down at inventery to lower of cost of net realisole value en cost of goods soid for the yoak ended December 31, current year? Complete this questien by entering your answers ia the tabs below