On 30 June 2009, a fl ash fl ood 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 fi nished goods inventories. A physical verifi cation taken after the fl ood revealed the following valuations:

A review of the books and records disclosed that the gross profi t margin historically approximated 25% of sales.
The sales for the fi rst six months were Rs. 6,80,000. Raw material purchases were Rs. 2,30,000. Direct labour costs for this period were Rs. 1,60,000 and manufacturing overhead has historically been 50% of direct labour.
Compute the cost of work-in-progress inventory lost on 30 June 2009 by preparing a statement of cost and profi t.

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Raw materials Work-in-progress Finished goods The inventory on 1 January 2009 consisted of the following: Raw materials Work-in-progress Finished goods Rs. 1,24,000 ? 2,38,000 Rs. 60,000 2,00,000 2,80,000 5,40,000