Basic Chemicals Ltd produces a highly flammable chemical product. The company experienced a flood on 1 April 2016 that destroyed its entire work in process inventory but did not affect the raw materials or finished goods inventories because they were located elsewhere. The insurance company wants to determine the cost of work in process inventory at the time of the flood. The company uses a periodic inventory system so perpetual records are not available.

A periodic inventory taken after the flood indicated that raw materials were valued at $89200 and finished goods at $116000. The company’s accounting records show that the inventories as at 1 January 2016 were:

Raw materials Work in process Finished goods

$29600 88800 136 800

In addition, the accounting records indicate that the costs recorded during the first quarter of 2016 amounted to:

Purchase of raw materials Direct labour	$160000 42000

In the past, factory overhead costs have amounted to 350% of direct labour cost.

Sales for the first quarter of 2016 amounted to $600000. The company’s gross profit has been 40% of sales for a long time.

Required

Determine the following amounts:

1. The cost of sales for the first quarter of 2016

2. The cost of goods manufactured for the first quarter of 2016

3. The work in process inventory as at 31 March 2016, broken down into direct materials, direct labour and factory overhead.