Far East Sales Co. uses the first-in, first-out method in calculating cost of goods sold for three of the products that Far East handles. Inventories and purchase information concerning these three products are given for the month of March. On March 31, Far East’s suppliers reduced their prices from the most recent purchase prices by the following percentages: product X, 15%; product Y, 12%; product Z, 9%. Accordingly, Far East decided to reduce its sales prices on all items by 10%, effective April 1. Far East’s selling cost is 10% of sales price. Products X and Y have a normal profit (after selling costs) of 25% on sales prices, while the normal profit on product Z (after selling cost) is 8% of sales price.,Instructions:,1. Calculate the value of the inventory at March 31, using the lower-of-cost-or-market method (applied to individual items).,2. Calculate the FIFO cost of goods sold for March and the amount of inventory write-off due to the marketdecline.