P2.37 LO 2.10 Inventory estimates, partial data: manufacturer On 12 April, after the close of business, Goldstein & Sons had a devastating fire that destroyed the firm's work in process and finished goods inventories. Fortunately, all raw materials escaped damage because materials owned by the firm were stored in another warehouse. The following information is available: Sales revenue, 1 January to 12 April Income before taxes, 1 January to 12 April Direct labour cost, 1 January to 12 April Cost of goods available for sale, 1 January to 12 April Work in process inventory, 1 January Finished goods Inventory, 1 January Gross profit margin $330000 68000 120000 275000 21000 37000 30% of sales The firm's accountants determined that the cost of direct materials used normally averages 25 per cent of prime costs. In addition, manufacturing overhead is 50 per cent of the firm's total manufacturing costs. Required Goldstein & Sons is in the process of negotiating a settlement with its insurance company. Prepare an estimate of the cost of work in process and finished goods inventories that were destroyed by the fire.