On June 30, 20X8, a flash flood damaged the warehouse and factory of Padway Corporation, completely destroying the work-in-process inventory. There was no damage to either the raw materials or finished goods inventories. A physical inventory taken after the flood revealed the following valuations:
- Raw materials $62,000
- Work-in-process 0
- Finished goods 119,000
- The inventory on January 1, 20X8, consisted of the following
- Raw materials $30,000
- Work-in-process 100,000
- Finished goods 140,000
A review of the books and records disclosed that the gross profit margin historically approximately 25% of sales. The sales for the first six months of 20X8 were $340,000. Raw material purchases were $115,000. Direct labor costs for this period were $80,000 and manufacturing overhead has historically been applied at 50% of direct labor.
Required: Compute the value of the work-in-process inventory lost at June 30, 20X8. Show supporting computation in good form.