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Maddox Specialty Company, a division of Lost World Inc., produces three models of gear shift components for bicycles which are sold to bicycle manufacturers, retailers and catalog outlets. Since starting operations in 1988, Maddox has employed normal absorption costing and has supposed a first-in, first-out cost flow in its perpetual inventory system. The balances of the inventory accounts at the end of Maddox's fiscal year, November 30, 2012, are described below.

The inventories are stated at cost before any year-end adjustments.

Finished goods

$647,000 Work in process

12,500 Raw materials

64,000 Factory supplies

9,000 

The given information, describe above, relates to Maddox's inventory and operations.

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