View Policies Current Attempt in Progress Shamrock 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, Shamrock 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 Shamrock's fiscal year, November 30, 2025, 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 265,500 Factory supplies 63,300 The following information relates to Shamrock's inventory and operations 1. The finished goods inventory consists of the items analyzed below. Down tube shifter Q Search Cost NRV ENG Question 3 of 3 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 -/33.3 Question 3 of 3 > -/33.3 2 One-half of the head tube shifter finished goods inventory is held by catalog outlets on consignment. 3 4 6. 7. Three-quarters of the bar end shifter finished goods inventory has been pledged as collateral for a bank loan. 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. The total NRV of the work in process inventory is $97.100. 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. Shamrock applies the LCNRV method to each of the three types of shifters in finished goods inventory. For each of the other three inventory accounts, Shamrock applies the LCNRV method to the total of each inventory account. 8. Consider all amounts presented above to be material in relation to Shamrock's financial statements taken as a whole (a) Prepare the inventory section of Shamrock's balance sheet as of November 30, 2025. Shamrock Specialty Company Balance Sheet (Partial) Chap. 8 Prob. Question 3 of 3 eTextbook and Media Shamrock Specialty Company Balance Sheet (Partial) -/33.3 E E