(Missing data) Mike Montgomery Company suffered major losses in a fire on June 18, 2006. In addition to destroying several buildings, the blaze de¬ stroyed the company’s work in process for an entire product line. Fortu¬ nately, the company was insured; however, it needs to substantiate the amount of the claim. To this end, the company has gathered the following information that pertains to production and sales of the affected product line:

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 30 percent of sales.

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:

a. Determine the value of Work in Process Inventory that was destroyed by the fire.

b. What other information might the insurance company require? How would management determine or estimate this information?LO1. 

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Direct material used Direct labor Manufacturing overhead applied $152,000 88,000 84,000