Problem 1 Computing work-in-process inventory from balance sheet and income statement information. On June 30, 20X2, a hurricane damaged Brown Corporation's warehouse and factory, completely destroying the work-in-process inventory. Neither the raw materials nor finished goods inventories were damaged. A physical inventory taken after the hurricane revealed the following valuations: Raw materials $ 150,000 Work-in-process 0 Finished goods 250,000 Total $ 400,000 The inventory of January 1, 20X2, consisted of the following: Raw materials $ 50,000 Work-in-process 325,000 Finished goods 415,000 Total $ 790,000 A review of the books and records disclosed that the gross profit margin historically approximated 33% of sales. The sales for the first six months of 20X2 was $800,000. Raw material purchases totaled $250,000. Direct labor costs for this period was $200,000 and manufacturing overhead has historically been applied at 50% of direct labor. Required: Compute the value of the work-in-process inventory lost as of June 30, 20X2. Show supporting computations