ll. Teltru, Inc. designs and manufactures thermometers used in industrial businesses. A natural disaster occurred, inventory was completely ruined, and the company's computer system, including all account records, was destroyed. Before the disaster recovery specialists clean the buildings, Tim Berger, the company controller, is trying to salvage whatever records he can to support an insurance claim for the destroyed inventory. He is standing in what is left of the accounting department with Bob Vachon, the cost accountant. Bob asked Tim what he should be looking for "Don't worry about beginning inventory numbers," responds Tim, "we'll get them from last year's annual report. We need first-quarter cost data." "I was working on the first-quarter results just before the storm hit," Bob says. "Look, my report's still in my desk drawer. All I can make out is that for the first quarter, material purchases were $571,200 and direct labor, manufacturing overhead, and total manufacturing costs to account for were $606,000, $294,000, and $1,710,000, respectively. Wait! cost of goods available for sale was $1,608,000