ProCore's finished goods inventory consists of 8,000 computer processors (see table below). 25% (2,000 units) of the finished goods inventory is comprised of 4th generation processors and the remaining 75% (6,000 units) is comprised of 5th generation processors (the latest processor available on the market). Procore's inventory of 2,000 units of 4th generation processors is presently valued at cost ($1,000 per unit), for a total of $2,000,000 Unit CostUnits Item 4th Generation Processor 5th Generation Processor Total Cost 2,000$2,000,000 6,000 S9,000,000 $1,000 $1,500 The annual financial statement audit of ProCore is currently under way, the audit is performed by external auditors from a large public accounting firm. The auditors are concerned about a potential over-valuation of ProCore's finished goods inventory because 4th generation processors will eventually become obsolete by industry standards. Based on the auditors' analyses, each 4th generation processor in the inventory should be valued at S800 per unit, not $1,000. Thus, the auditors believe that ProCore's estimate of 4th generation processors is overstated by $400,000 ($200 overstatement for each of the 2,000 units), and should be valued at $1,600,000 rather than $2,000,000 To summarize The auditors believe the 4th generation processors should be valued at $1,600,000 ($800 per unit) ProCore believes the 4th generation processors should be valued at $2,000,000 ($1,000 per unit) As a manager at ProCore, your task is to correspond with the auditor in-charge, Joe, and persuade him that the 4th generation processors are appropriately valued at $1,000 per unit rather than $800 per unit that the audit firms believes is more appropriate. Assume that if you cannot persuade the auditors to drop their request for a lower inventory value you and your boss will not receive a bonus this year