Marin Company specializes in producing fashion outfits. On July 31, 2022, a tornado touched down at its factory and general office. The inventories in the warehouse and the factory were completely destroyed, as was the general office nearby. However, after a careful search of the disaster site the next morning, Bill Francis, the company's controller, and Elizabeth Walton, the cost accountant, were able to recover a small part of the manufacturing cost data for the current month. "What a horrible experience," sighed Bill. "And the worst part is that we may not have enough records to use in filing an insurance claim." "It was terrible, replied Elizabeth. "However, I managed to recover some of the manufacturing cost data that I was working on yesterday afternoon. The data indicate that our direct labor cost in July totaled $265,000 and that we had purchased $386,900 of raw materials. Also, I recall that the amount of raw materials used for July was $371,000. But I'm not sure this information will help. The rest of our records are blown away." "Well, not exactly" said Bill. "I was working on the year-to-date income statement when the tornado warning was announced. My recollection is that our sales in July were $1,314,400 and our gross profit ratio has been 40% of sales. Also, I can remember that our cost of goods available for sale was $816,200 for July "Maybe we can work something out from this information!" exclaimed Elizabeth. "My experience tells me that our manufacturing overhead is usually 60% of direct labor." "Hey, look what I just found, cried Elizabeth. "It's a copy of this June's balance sheet, and it shows that our inventories as of June 30 are Finished goods $40,280, Work in process $26,500, and Raw materials $20,140"