On June 30, 2008, a flash flood damaged the warehouse and factory of ABC Corporation completely destroying the work-in-progress inventory. There was no damage to either the raw materials or finished goods inventories. A physical verification taken after the flood revealed the following valuations:

A review of the books and records disclosed that the gross profit margin historically approximated 25% of sales. The sales for the first six months of 2008 were Rs. 3,40,000. Raw Material purchases were Rs. 1,15,000, Direct Labour costs for this period were Rs. 80,000 and manufacturing overhead has historically been 50% of direct labour. Compute the cost of work-in-progress inventory lost at June 30, 2008 by preparing a statement of cost and profit.

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Raw Materials Work-in-progress Finished Goods The inventory on Jan. 1, 2008, consisted of the following: Raw Materials Work-in-progress Finished Goods Rs. Rs. Rs. Rs. Rs. 62,000 0 1,19,000 30,000 1,00,000 1,40,000 2,70,000