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

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Sandals Company is preparing the annual financial statements dated December 31. Ending inventory is presently recorded at its total cost of $12,050. Information about its inventory items follows: Quantity on Hand 45 20 Unit Cost When Acquired (FIFO) $ 20 40 65 90 Product Line Air Flow Blister Buster Coolonite Dudesly Required: 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 market/net realizable value affect the company's 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. 90 50 Value at Year-End $ 27 34 59 98 Sandals Company is preparing the annual financial statements dated December 31. Ending inventory is presently recorded at its total cost of $12,050. Information about its inventory items follows: Quantity on Hand 45 20 Unit Cost When Acquired (FIFO) $ 20 40 65 90 Product Line Air Flow Blister Buster Coolonite Dudesly Required: 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 market/net realizable value affect the company's 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. 90 50 Value at Year-End $ 27 34 59 98

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1 To compute the LCMNRV writedown per unit and in total for each item we need to compare the cost an... View the full answer