65. (Missing data) The Hurlstone Company suffered major losses in a fire on April 18, 2000. In addition to destroying several buildings, the blaze destroyed the company’s work in process for an entire product line. Fortunately, the company was insured. However, the company 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 April amounted to $230,000.

Normally, this product line generates a gross profit equal to 30 percent of sales.

2. Finished Goods Inventory was $29,000 on April 1 and $42,500 on April 18.

3. On April 1, Work in Process Inventory was $48,000.

4. During the first 18 days of April, the company incurred the following costs:

Direct materials used $76,000 Direct labor 44,000 Manufacturing overhead applied 42,000

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?