On May 10, after the close of business, Fresno Furniture Company had a devastating fire that destroyed the company's work-in-process and finished-goods inventories. Fortunately, all raw materials escaped damage because materials owned by the firm were stored in another warehouse. The following information is available: Sales revenue through May 10 Income before taxes through May Direct labor through May 10 68,000 120,000 265,000 January 21,000 35,000 103 Cost of goods available for sale, Work-in-process inventory, Finished-goods inventory, January1 May 10 Fresno Furniture Company's accountants determined that the cost of direct materials used normally averages 25 percent of prime costs (i.e., direct material direct labor). In addition, manufacturing overhead is 50 percent of the firm's total production costs. The Required: The company is in the process of negotiating a settlement with its insurance company. 1. Calculate the cost of finished-goods inventory that was destroyed by the fire. Cost of finished-goods inventory 2.Calculate the cost of work-in-process inventory that was destroyed by the fire Cost of work-in-process inventory