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 Quantity on Hand Unit Cost When Acquired $($FIFO$)$ Value at Year$-$End

Air Flow $20$ $ $12$ $ $14$

Blister Buster $754038$

Coolonite $355550$

Dudesly $103035$

Required:

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.

How will the write$-$down of inventory to lower of cost or market$/$net realizable value affect the company$$s expenses reported for the year ended December $31?$

Compute the amount that should be reported for the inventory on December $31,$ after the LCM$/$NRV rule has been applied to each item.