Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher

Exercise 40

Reconstruct Missing Data
A tornado struck the only manufacturing plant of Toledo Farm Implements (TFI) on June 1. All work-in-process inventory was destroyed, but a few records were salvaged from the wreckage and from the company's headquarters. If acceptable documentation is provided, the loss will be covered by insurance. The insurable value of work-in-process inventory consists of direct materials, direct labor, and applied overhead.
The following information about the plant appears on the April financial statements at the company's downtown headquarters:

A count of the inventories on hand May 31 shows the following:

The accounts payable clerk tells you that outstanding bills to suppliers totaled $100,200 and that cash payments of $75,800 were made to them during the month. She informs you that the payroll costs last month for the manufacturing section included $164,800, of which $29,400 was indirect labor.
At the end of May, the following balances were available from the main office:

Recall that each month there is only one requisition for indirect materials. Among the fragments of paper, you located the following information, which you have neatly typed for your records:
From scrap found under desk: indirect materials $4,172
You also learn that the overhead during the month was overapplied by $2,400.
Required
Determine the cost of the work-in-process inventory lost in the disaster.