Fire Loss; Computing Inventory Costs A distraught employee, Fang W. Arson, put a torch to a factory on a blustery February 26. The resulting blaze completely destroyed the plant and its contents. Fortunately, certain accounting records were kept in another building. They revealed the following for the period December 31, 19_1-February 26, 19_2:

Prime costs average 70 percent of the cost of goods manufactured.

Gross profit percentage based on net sales, 20 percent.

Cost of goods available for sale, $450,000.

Direct material purchased, $160,000.

Work in process, 12/31/_1, $34,000 (have same cost proportions as finished goods).

Direct material, 12/31/_1, $16,000.

Finished goods, 12/31/_1, $30,000.

Factory overhead, 40 percent of conversion costs.

Sales, $500,000.

Direct labor, $180,000.

The loss was fully covered by insurance. The insurance company wants to know the approximate cost of the inventories as a basis for negotiating a settlement, which is really to be based on replacement cost, not historical cost.

Calculate the cost of:

1. Finished-goods inventory, 2/26/_2.

2. Work-in-process inventory, 2/26/_2.
3. Direct-material inventory, 2/26/_2.