A severe tornado struck the only manufacturing plant of Kansas Rollerblades, Inc., just after midnight on December 1. All the work-in-process inventory was destroyed, but a few records were salvaged from the wreckage and from the company’s headquarters. The insurance company has stated that it will pay the cost of the lost inventory if adequate documentation can be supplied. The insurable value of work-in-process inventory consists of direct materials, direct labor, and applied overhead. The following information about the plant appears on the financial statements at the company’s headquarters. This information pertains to the October before the tornado.

Materials inventory (includes direct and indirect materials), October 31...............$ 49,000

Work-in-process inventory, October 31.................................................................. 86,200

Finished goods inventory, October 31.................................................................... 32,000

Cost of goods sold for the year through October 31.............................................. 348,600

Accounts payable (materials suppliers) on October 31........................................... 21,600

Actual manufacturing overhead for the year to date through October 31.............. 184,900

Payroll payable on October 31................................................................................ --0--

Withholding and other payroll liabilities on October 31........................................ 9,700

Applied manufacturing overhead for the year to date through October 31........... 179,600

A count of the inventories on hand November 30 (just before the tornado) showed

Materials inventory ............................................................... $ 43,000

Work-in-process inventory..................................................... ?

Finished goods inventory....................................................... 37,500

The accounts payable clerk tells you that outstanding bills to materials suppliers totaled $50,100 as of the close of business on November 30 (just before the tornado hit) and that cash payments of $37,900 were made to them during the month of November. The payroll clerk informs you that the payroll costs last month for the manufacturing section were $82,400, of which $14,700 was indirect labor.

At the end of November, the following balances were available from the main office:

Manufacturing overhead for the year to date through November 30 (actual).........$217,000

Cost of goods sold for the year to date through November 30................................ 396,600

Among the fragments of paper that you found lying about, you learn that indirect materials requisitioned in November was $2,086. You also learn that the overhead during the month of November was overapplied by $1,200. Compute the cost of the work-in-process inventory lost in the disaster.