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Sandals Company is preparing the annual financial statements dated December 31. Ending inventory is presently...

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Accounting

Sandals Company is preparing the annual financial statements dated December 31. Ending inventory is presently recorded at its total cost of $13,775. Information about its inventory items follows: Product Line Quantity on Hand Unit Cost When Acquired (FIFO) Value at Year-End Air Flow 90 $ 85 $ 87 Blister Buster 10 10 4 Coolonite 20 20 16 Dudesly 75 75 78 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 companys 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.

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