2. One-half of the head tube shifter finished goods inventory is held by catalog outlets on consignment. 3. Three-quarters of the bar end shifter finished goods inventory has been pledged as collateral for a bank loan. 4. One-half of the raw materials balance represents derailleurs acquired at a contracted price 20% above the current market price. The NRV of the rest of the raw materials is $118,500. three inventory accounts, Cullumber applies the LCNRV method to the total of each inventory account. 8. Consider all amounts presented above to be material in relation to Cullumber's financial statements taken as a whole. (a) Prepare the inventory section of Cullumber's balance sheet as of November 30, 2025. Cullumber Specialty Company, a division of Lost World Inc., manufactures three models of gear shift components for bicycles that are sold to bicycle manufacturers, retailers, and catalog outlets. Since beginning operations in 1993, Cullumber has used normal absorption costing and has assumed a first-in, first-out cost flow in its perpetual inventory system. The balances of the inventory accounts at the end of Cullumber's fiscal year, November 30,2025, are shown below. The inventories are stated at cost before any year-end adjustments. The following information relates to Cullumber's inventory and operations. 1. The finished goods inventory consists of the items analyzed below