You are engaged in an audit of the Roche Mfg. Company for the year ended December 31, 2016. To reduce the workload at year-end, the company took its annual physical inventory under your observation on November 30, 2016. The company's inventory account, which includes raw materials and work in process, is on a perpetual basis, and it uses the first-in, first-out method of pricing. It has no finished goods inventory. The company's physical inventory revealed that the book inventory of $61140 was understated by $2330. To avoid distorting the interim financial statements, the company decided not to adjust the book inventory until year-end except for obsolete inventory items. Your audit revealed this information about the November 30 inventory:

Pricing tests showed that the physical inventory was overpriced by $1180.

Footing and extension errors resulted in a $160 understatement of the physical inventory.

Direct labor included in the physical inventory amounted to $8430. Overhead was included at the rate of 200% of direct labor. You determined that the amount of direct labor was correct and the overhead rate was proper.

The physical inventory included obsolete materials recorded at $320. During December, these materials were removed from the inventory account by a charge to cost of sales.

Your audit also disclosed the following information about the December 31, 2016 inventory.

Total debits to certain accounts during December are:

		December
Purchases		$26400
Direct labor		11680
Manufacturing overhead expense		24520
Cost of sales		66320

The cost of sales of $66320 included direct labor of $12630.

Normal fragment loss on established product lines is negligible. However, a special order started and completed during December had excessive fragment loss of $530, which was charged to Manufacturing Overhead Expense.

Required:

1. Compute the correct amount of the physical inventory at November 30, 2016.

Inventory per books			$
Physical inventory, per client			$
Total			$
	$
Corrected physical inventory at November 30, 2016			$

2. Without prejudice to your solution to Requirement 1, assume that the correct amount of the inventory at November 30, 2016 was $56120. Compute the amount of the inventory at December 31, 2016.

Corrected physical inventory at November 30			$
		$
Inventory of materials at November 30			$
Total material available			$
		$
	$
Total		$
Total		$
Materials inventory at December 31			$
		$
Inventory at December 31, 2016			$