Sublime Sandals Company was formed on January 1, 2014, and is preparing its annual financial statements dated December 31, 2014. Ending inventory information about the four major items stocked for regular sale follows:

Required
1. Compute the amount that should be reported for the 2014 ending inventory, using the LC&NRV rule applied to each item.
2. How will the write-down of inventory to lower of cost and net realizable value affect the company's expenses reported for the year ended December 31, 2014?
3. How would the methods used by Sublime Sandals Company to account for its inventory be affected by a switch from ASPE to IFRS?

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Ending Inventory, 2014 Unit Cost When Net Realizable Value at Year-End Quantity on Hand 20 75 Product Line Acquired (FIFO) Air Flow $12 40 $14 38 Blister Buster Coolonite Dudesly 35 55 35 10 30