Gross Profit Method: Estimation of Flood Loss on June 30, 2016, a flash flood damaged the warehouse and factory of Padway Corporation, destroying the work in process inventory. There was no damage to either the raw materials or finished inventories. A physical inventory taken after the flood revealed the following valuations: Raw materials $62,000 Work in process 0 Finished goods 119,000 The inventory on January 1, 2016 consisted of the following: Raw materials $30,000 Work in process 100,000 Finished goods 140,000 $270,000 A review of the books and records disclosed that the gross profit margin historically approximated 25% of sales. The sales for the first six months of 2016 were $340,000. Raw material purchases were $115,000. Direct labor costs for this period were $80,000, and manufacturing overhead was historically applied at 50% of direct labor. Required: Compute the value of the work-in-process inventory lost at June 30, 2016. Show supporting computations in good form