Job-order costing in a service company Bailes Condos Corporation is a small company owned by Ray Miller. It leases three condos of differing sizes to customers as vacation facilities. Labor costs for each condo consist of maid service and maintenance cost. Other direct operating costs consist of interest and depreciation. The direct operating costs for each condo follow.

Indirect operating expenses, which amounted to $41,040, are allocated to the condos in proportion to the amount of other direct operating costs incurred for each.
Required
a. Assuming that the amount of rent revenue from Condo 2 is $96,000, what amount of income did it earn?
b. Based on the preceding information, will the company show finished goods inventory on its balance sheet? If so, what is the amount of this inventory? If not, explain why not.

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Other Direct Operating Costs Direct Labor $16,200 18,600 22,500 $ 5,730 Condo 1 Condo 2 Condo 3 Total $37,800 57,000 $13,680