Sanchez Comparny wes formed on January 1 of the current year and is preparing the annuel financial stetements deted December 31 , current year. Ending inventory infarmation about the four major items stacked for regular sale fallows: Required: 1. Compute the valuation that should be used for the curront yoar onding inwantary using lowar of coat or net realizable value appliad on an 7em-by-item besis. 2. What will be the effect of the write-dowi of inventory to lower of cost or ret realizable value on cast of goods sold for the year ended December 31, current year? Complete this question by entering your answers in the tabs below. Compute the wolustion that should be used for the current year ending Inventory using lower of cost or net resizable velue applied on an them-by-itam basis