Maddox 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 1990, Maddox 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 Maddoxs fiscal year, November 30, 2014, are shown below. The inventories are stated at cost before any year-end adjustments. Finished goods $669,870 Work in process 126,000 Raw materials 270,200 Factory supplies 70,000 The following information relates to Maddoxs inventory and operations. 1. The finished goods inventory consists of the items analyzed below. Cost Market Down tube shifter Standard model $ 68,800 $ 68,100 Click adjustment model 94,200 91,660 Deluxe model 113,900 110,500 Total down tube shifters 276,900 270,260 Bar end shifter Standard model 84,760 91,990 Click adjustment model 108,000 106,200 Total bar end shifters 192,760 198,190 Head tube shifter Standard model 78,610 78,160 Click adjustment model 121,600 123,900 Total head tube shifters 200,210 202,060 Total finished goods $669,870 $670,510 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 market value of the rest of the raw materials is $132,100. 5. The total market value of the work in process inventory is $113,290. 6. Included in the cost of factory supplies are obsolete items with an historical cost of $4,500. The market value of the remaining factory supplies is $66,700. 7. Maddox applies the lower-of-cost-or-market method to each of the three types of shifters in finished goods inventory. For each of the other three inventory accounts, Maddox applies the lower-of-cost-or-market method to the total of each inventory account. 8. Consider all amounts presented above to be material in relation to Maddoxs financial statements taken as a whole. (a) Prepare the inventory section of Maddoxs balance sheet as of November 30, 2015