please help and explain each step taken

Decision Case 16-1 PowerSwitch, Inc. designs and manufactures switches used in telecommunications. Serious flooding throughout North Carolina affected PowerSwitch's facilities. Inventory was completely ruined, and the company's computer system, including all accounting records, was destroyed. Before the disaster recovery specialists clean the buildings, Stephen Plum, the company controller, is anxious 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 Paul Lopez, the cost accountant. \"I didn't know mud could smell so bad,\" Paul says. \"What should I be looking for?\" \"Don't worry about beginning inventory numbers,\" responds Stephen, \"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,\" Paul says, \"Look, my reports still in my desk drawer. All I can make out is that for the first-quarter, material purchases were $476,000 and direct labor, manufacturing overhead, and total manufacturing costs to account for were $505,000; $245,000; and $1,425,000; respectively. Wait! Cost of goods available for sale was $1,340,000.\" \"Great,\" says Stephen. \"I remember that sales for the period were approximately $1,700,000. Given our gross profit of 30%, that's all you should need.\" Paul is not sure about that, but decides to see what he can do with this information. The beginning inventory numbers are . Direct materials $113,000 .Work in process, $229,000 .Finished goods, $154,000 He remembers a schedule he learned in college that may help him get5 started. Requirements 1. Exhibit 16-11 resembles the schedule Paul has in mind. Use it to determine the ending inventories of direct materials, work in process, and finished goods. Exhibit 16-11 Flow of Costs Through a Manufacturer's Inventory Accounts Direct Materials Inventory Work in process Inventory Finished Goods Inventory Beginning inventory $70,000 Beginning inventory $80,000 Purchase and freight in 350,000 Direct materials used $335,000 Cost of goods 169,000 manufactured Direct labor Manufacturing overhead Beginning inventory 73,000 Total manufacturing costs incurred during the year Direct materials Total manufacturing costs available for use 420,000 to account for Ending inventory -65,000 Ending inventory Direct materials used $597,000 $355,000 Cost of goods manufactured 2. Itemize a list of the book value of inventory lost. Cost of goods $677,000 available for sale -27,000 Ending inventory $650,000 Cost of goods sold