PROBLEM 1.

The balances of the inventories of Essex Corporation are presented below:

Finished goods Work-in-process Raw materials Dec. 31, 2017 815,000 340,000 200,000 Dec. 31, 2018 780,000 354,000 185,000 Finished goods Work-in-process Raw materials Dec. 31, 2017 815,000 340,000 200,000 Dec. 31, 2018 780,000 354,000 185,000