QUESTION #8 On August 15, after the close of business, PINK 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 August 15 $330,000 Income before taxes through August 15 68,000 Direct labor through August 15 120,000 Cost of goods available for sale, August 15 ..... 275,000 Work-in-process inventory, January 1 21,000 Finished-goods inventory, January 1 37,000 Gross margin 30% of sales The firm's costing manager determined that the cost of direct materials used normally averages 25 percent of prime costs (.e., direct material + direct labor). In addition, manufacturing overhead is 50 percent of the firm's total production costs. Required: PINK is in the process of negotiating a settlement with its insurance company. Prepare an estimate of the cost of work-in-process and finished- goods inventories that were destroyed by the fire