Larkspur 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, Larkspur 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 Larkspurs fiscal year, November 30, 2017, are shown below. The inventories are stated at cost before any year-end adjustments.

Finished goods		$648,700
Work in process		110,800
Raw materials		265,300
Factory supplies		63,300

The following information relates to Larkspurs inventory and operations. 1. The finished goods inventory consists of the items analyzed below.

		Cost		NRV
Down tube shifter
Standard model		$61,900		$61,300
Click adjustment model		103,100		85,800
Deluxe model		107,600		109,400
Total down tube shifters		272,600		256,500
Bar end shifter
Standard model		86,000		91,700
Click adjustment model		101,000		99,500
Total bar end shifters		187,000		191,200
Head tube shifter
Standard model		83,300		82,900
Click adjustment model		105,800		107,900
Total head tube shifters		189,100		190,800
Total finished goods		$648,700		$638,500

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 $115,500.
5.		The total NRV of the work in process inventory is $97,100.
6.		Included in the cost of factory supplies are obsolete items with an historical cost of $4,600. The market value of the remaining factory supplies is $60,600.
7.		Larkspur applies the LCNRV method to each of the three types of shifters in finished goods inventory. For each of the other three inventory accounts, Larkspur applies the LCNRV method to the total of each inventory account.
8.		Consider all amounts presented above to be material in relation to Larkspurs financial statements taken as a whole.

(a) Prepare the inventory section of Larkspurs balance sheet as of November 30, 2018