_____ ____ 1"'J""_ _______ D B P9-9B (Statement and Note Disclosure, LCM, and Purchase Commitment) Captive Style, a division of D D Sanibel Inc., manufactures three models of boat seat components that are sold to speed boat manufacturers, retailers, and catalog outlets. Since beginning operations in 1978, Captiva has used normal absorption cost- ing and has assumed a first-in, first-out cost ow in its perpetual inventory system. The balances of the inventory accounts at the end of Captiva's fiscal year, April 30, 2014, are shown below. The inventories are stated at cost before any year-end adjustments. Finished goods $262,000 Work in process 86,500 Flaw materials 310,500 Factory supplies 46,000 The following information relates to Captiva's inventory and operations. 1. The finished goods inventory consists of the items analyzed below. Cost Market Seat cushion Standard model $ 37,500 $ 50,000 Deluxe model 50,500 78,000 Limited model 46,000 86,000 Total seat cushions 134,000 214,000 Arm rests Standard model 37,000 29,600 Deluxe model 30,000 34,400 Total arm rests 67,000 64,000 Lumbar support Standard model 42,000 68,100 Deluxe model 19,000 36,400 Total lumbar supports 61,000 104,500 Total nished goods $262,000 $422,500 2. Three-quarters of the seat cushion finished goods inventory is held by catalog outlets on consignment. One-half of lumbar support finished goods inventory has been pledged as collateral for a bank loan. 4. Sixty percent of the raw materials balance represents electronic control units acquired at a contracted price 40 percent above the current market price. The market value of the rest of the raw materials is $110,800. S\