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QUESTION 8The Walker Products Company, a small manu­facturing company, produces a highly flammable cleaning fluid. On May 31, 2007 the company had a fire which completely destroyed the processing building and the work in process inventory; some of the equipment was saved. After the-fire a physical inventory was taken. The raw materials were valued at $30,000, the finished goods at $60,000, and supplies at $5,000.The inventories on January 1, 2007 consisted of the following: Raw materials ………………………$ 15,000Work in process…………………….50,000Finished goods………………………70,000Supplies…………………………….2,000Total…………………………………$137,000A review of the accounts showed that the sales and gross profit for the last five years were:SalesGross Profit19A$300,000$ 86,20019B320,000102,40019C330,000108,90019D250,00062,50019E280.00084,0001,480,000444,000 The sales for the first five months of 19Fwere $150,000; raw materials purchases were $50,000; freight on purchases was $5,000; direct labor for the five months was $40,000. For the past five years, factory overhead was 50% of direct labor cost.You are required to determine the value of the work inProcess inventory lost by Fire.