value: 10.00 points 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 10 Direct labor through May 10 Cost of goods available for sale, May 10 Work-in-process inventory, January 1 Finished-goods inventory, January 1 $ 495,000 102,000 180,000 412,500 31,500 55,500 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 gross margin is 30 percent of sales. 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