Sandals Company is preparing the annual financial statements dated December 31. Ending inventory information about the four major items stocked for regular sale follows:

Product Line	Quantity on Hand			Unit Cost When Acquire(FIFO)			Market Value at Year-End
Air Flow		30		$	14		$	16
Blister Buster		85			36			34
Coolonite		33			65			60
Dudesly		20			26			31

Compute the amount that should be reported for the ending inventory using the LCM rule applied to each item.

How will the write-down of inventory to lower of cost or market affect the companys expenses reported for the year ended December 31?