On June 30,2016, a flash flood damaged the warehouse and factory of Padway Corporation, completely destroying the work-in-process inventory. There was no damage to either the raw materials or finished goods 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 consisited of the following:

Raw materials $30,000

Work in process $100,000

Finished Goods $140,000

Total $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.