Carla Style, a division of Sanibel Inc., manufactures three models of boat seat components that are sold to speed boat

manufacturers, retailers, and catalog outlets. Since beginning operations in $1983,$ Carla 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 Carla's fiscal year, April $30,2025,$ are shown below. The inventories are stated at cost before any

year$-$end adjustments.

The following information relates to Carla's inventory and operations:

The finished goods inventory consists of the items analyzed below.

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.

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 $$111,500.$

The total market value of the work in process inventory is $$85,200.$

Included in the cost of factory supplies are obsolete items with an historical cost of $$6,700.$ The market value of

the remaining factory supplies is $$40,800.$

Carla applies the LCNRV method to each of the three types of seat components in finished goods inventory. For

each of the other three inventory accounts, Carla applies the lower$-$of$-$cost$-$ or$-$market method to the total of

each inventory account.

Consider all amounts presented above to be material in relation to Carla's financial statements taken as a

whole.

Current Assets

Inventory

$

Work$-$in$-$Process

Raw Materials

$221250$

Factory Supplies

Total Inventories