Hector P. Wastrel, a careless employee, left some combustible materials near an open flame in Salter Company's plant. The resulting explosion and fire destroyed the entire plant and administrative offices. Justin Quick, the company's controller, and Constance Trueheart, the operations manager, were able to save only a few bits of information as they escaped from the roaring blaze.
"What a disaster," cried Justin. "And the worst part is that we have no records to use in filing an insurance claim."

"I know," replied Constance. "I was in the plant when the explosion occurred, and I managed to grab. only this brief summary sheet that contains information on one or two of our costs. It says that our direct labor cost this year totaled $180,000 and that we purchased $290,000 in raw materials. But I'm afraid that doesn't help much; the rest of our records are just ashes."

"Well, not completely," said Justin. "I was working on the year-to-date income statement when the explosion knocked me out of my chair. I instinctively held onto the page I was working on, and from what I can make out, our sales to date this year totaled $ 1,200,000 and our gross margin was 40% of sales, Also, I can see that our goods available for sale to customers totaled $810,000 at cost.

"Maybe we're not so bad off after all," exclaimed Constance. "My sheet says that prime cost totaled $410,000 so far this year and that manufacturing overhead is 70% of conversion cost. Now if we just had some information on our beginning inventories."

"Hey, look at this," cried Justin. "It's a copy of last year's annual report, and it shows what our inventories were when this year started. Let's see, raw materials was $18,000, work in process was $65,000, and finished goods was $45,000.
"Super," yelled Constance. "Let's go to work."
To file an insurance claim, the company must determine the amount of cost in its inventories as of the date of the fire. You may assume that all materials used in production during the year were direct materials.
Required:
Determine the amount of cost in the Raw Materials, Work in Process, and Finished Goods inventory accounts as of the date of the fire. (Hint: One way to proceed would be to reconstruct the various schedules and statements that would have been affected by the company's inventory accounts during the period.)