Fenwick Corporation's manufacturing and finished goods warehouse facilities burned to the ground on January 31. The loss was fully covered by insurance. The insurance company wanted to know the cost of the inventories destroyed in the fire. The company's accountants gathered the following information: Direct materials purchased in January $ 160,000 Work in Process Inventory, January 1 34,000 Materials Inventory, January 1 16,000 Finished Goods Inventory, January 1 30,000 Direct labor costs incurred in January 190,000 Prime costs charged to jobs in January 294,000 Cost of finished goods available for sale in January 450,000 Sales revenue earned in January 500,000 Gross profit as a percentage of January sales 25 % Manufacturing overhead applied to jobs in January as a percentage of total conversion costs 60 % Assume that actual manufacturing overhead was exactly equal to the amount applied to production at the time of the fire.
a. Compute the cost of materials inventory (assume materials inventory is comprised entirely of direct materials) lost in the fire. (Omit the "$" sign in your response.) Materials inventory $
b. Compute the cost of work in process inventory lost in the fire. (Omit the "$" sign in your response.) Work in process inventory $
c. Compute the cost of finished goods inventory lost in the fire. (Omit the "$" sign in your response.) Finished goods inventory $