XYZ Manufacturing Company suffered major losses in a fire onDecember 18, 2009. In addition to destroying several buildings, theblaze destroyed the company's work in process inventory foran entire product line. Fortunately, the company was insured;however, it needs to substantiate the amount of the claim. To thisend, the company has gathered the following information thatpertains to production and sales of the affected product line:
1.The company's sales for thefirst 18 days of December amounted to $460,000. Normally, thisproduct line generates a gross profit equal to 40 percent ofsales.
2.Finished Goods Inventory was $58,000on December 1 and $85,000 on December 18.
3.On December 1, Work in ProcessInventory was $96,000.
4.During the first 18 days of December,the company incurred the following costs:
Direct materialused $152,000 Directlabor 88,000
Manufacturingoverhead 84,000
Determine the value of Work in Process Inventory that wasdestroyed by the fire.