Sandals Company is preparing the annual financial statements dated December 31. Ending inventory is presently recorded at its total cost of $5,400. Information about its inventory items follows:

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 companys 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.