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Fortunately for the company, when the fire broke out certain employees were able to take with them important financial documentation that could be used to recalculate the company's last standing levels of inventory. When the fire broke out, these employees fled the building as fast as possible while at the same time carrying with them the last items that they were working on. The following list of information has been salvaged from the fire of Cumberland Metals Corporation:
? Direct labor costs for this year totals $180,000
? New raw material purchases total $290,000
? Sales to date total $1,200,000
? Gross margin rate for the company is 40% of sales
? Goods available for sale to customers totals $810,000 at cost
? Prime cost for the company is $410,000
? Manufacturing overhead is 70% of conversion cost
? Beginning raw materials for the year were $18,000
? Beginning work in progress for the year was $65,000
? Beginning finished goods for the year was $45,000
Based on this information the company needs to determine the amount of cost in its inventories on the date of the fire...
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