Fire Loss Calculation: The value of the work in process inventory lost by fire

Fire Loss Calculation. 

The Walker Products Company, Inc., a small manufacturing company, produces a highly flammable cleaning fluid. On May 31, 19F the company had a fire which completely destroyed the processing building and the work in process inventory; some of the equipment was saved. 

After the fire a physical inventory was taken. The raw materials were valued at $30,000, the finished goods at $60,000, and supplies at $5,000. The inventories on January 1, 19F consisted of:

Raw materials                      S 1 5,000
Work in process                       50,000
Finished goods                         70,000
Supplies                                     2,000
Total                                    $137,000

A review of the accounts showed that the sales and gross profit for the last five years were:
                                 Sales                  Gross Profit
19A                    $300,000                  $ 86,200
19B                      320,000                   102,400
19C                     330,000                   108,900
1 9D                    250,000                     62,500
19E                     280,000                     84,000

The sales for the first five months of 19F were $150,000; raw materials purchases were $50,000; freight on purchases was $5,000; direct labor for the five months was $40,000. For the past five years, factory overhead was 50% of direct labor cost.

Required: The value of the work in process inventory lost by fire.