On June 30, 2014, a tornado damaged Jensen Corporation’s warehouse and factory, completely destroying the work-in-process inventory. Neither the raw materials nor finished goods inventories were damaged. A physical inventory taken after the tornado revealed the following valuations:
Raw materials ... $ 87,000
Work-in-process ..... 0
Finished goods .. 151,000
$238,000

The inventory of January 1, 2014, consisted of the following:
Raw materials .. $ 41,000
Work-in-process . 128,000
Finished goods .. 173,000
$342,000

A review of the books and records disclosed that the gross profit margin historically approximated 28% of sales. The sales total for the first six months of 2014 was $405,000. Raw material purchases totaled $150,000. Direct labor costs for this period were $112,000, and manufacturing overhead has historically been applied at 50% of direct labor.

Required:
Compute the value of the work-in-process inventory lost at June 30, 2014. Show supporting computations.