Rapid Response Manufacturing Company suffered major losses in a fire on June 18, 2009. In addition to destroying several buildings, the blaze destroyed the company’s Work-In-Process Inventory for an entire product line. Fortunately, the company was insured; however, it needs to substantiate the amount of the claim. To this end,
(1) The company’s sales for the first 18 days of June amounted to $460,000. Normally, this product line generates a gross profit equal to 40% of sales revenue.
(2) Finished Goods Inventory was $58,000 on June 1 and $85,000 on June 18.
(3) On June 1, Work-In-Process Inventory was $96,000.
(4) During the first 18 days of June, the company incurred the following costs:
Direct material used $152,000
Direct labor 88,000
Manufacturing overhead 84,000
What is the value of Work-In-Process Inventory that was destroyed by the fire?