(b) On 24 December after the close of business, a devastating fire at Solaris Pharmaceutical destroyed the firm's raw materials and finished goods inventories. The following information is available: Sales revenue, 1 January to 24 December Purchases, 1 January to 24 December $ 1,980,000 270,000 720,000 Direct labour cost, 1 January to 24 December Cost of goods available for sale, 1 January to 24 December 1,500,000 Raw material inventory, 1 January Finished goods inventory, 1 January 60,000 222,000 30% Gross profit margin The firm's accountant determines that the cost of direct materials used normally averages 25% of prime costs. Required: Solaris Pharmaceutical is in the process of negotiating a settlement with its insurance company. Compute an estimate on the cost of the following that were destroyed by the fire: (i) Raw material inventory. (ii) Finished goods inventory. (5 marks) (7 marks)