Q.1.Madleen Manufacturing Company, a large manufacturing company which produces a flammable color chemical. On May 31st the company had fire which completely destroyed the building and manufacturing unit and inventory. Physical stock was available raw material $30,000 and finished goods $ 60,000, supplies at $5,000. The inventories on 1st January 2019; Material $15,000 Work in Process $50,000 Finished Goods $70,000 Supplies $2,000 Total $137,000 Last five years sales and gross profit are as follows Sales 2014 $300,000 2015 $320,000 2016 $330,000 2017 $250,000 2018 $270,000 Gross Profit $96,200 $112,400 $118,900 $68,500 $94,000 The first five month sales were $150,000, Material $50, 000, freight on purchases $5,000. Direct labour for the five months was $40,000. Factory overhead 50% of direct labour from last five years. Required: Calculate the value of the work in process inventory lost by fire