Baltimore Manufacturing Corporation (BMC) incurred the below expenditure for 2020 for the manufacture of portable heaters. During the year 2020, BMC suffered flood damages, and as a results, all raw materials were totally damaged. BMC was able to calculate the amounts for all the other cost elements except the raw materials used.

2A. Consequently, BMC has engaged you, a forensic accountant, to compute the amount recoverable from its insurance company for raw materials used (Show your work below).

Direct labor.$60,000

Factory Foremen wages..$32,000

Raw materials used for manufacturing$27,000

Purchases of raw materials...$18,000

Import duties on raw materials$7,000

Freight-in on raw materials..$4,500

Factory overhead costs.$3,000