On 11 December after the close of business, a devastating fire at Bio Pte Ltd destroyed the firm's work in process and finished goods inventories. The following information is available: $ Sales revenue, 1 January to 11 December Purchases, 1 January to 11 December Income before taxes, 1 January to 11 December Direct labour cost, 1 January to 11 December Cost of goods available for sale, 1 January to 11 December Raw material inventory, 1 January Work in process inventory, 1 January Finished goods inventory, 1 January Gross profit margin 1,980,000 300,000 408,000 720,000 1.650.000 60,000 126,000 222,000 30% The firm's accountant determines that the cost of direct materials used normally averages 25% of prime costs. In addition, manufacturing overhead is 50% of the firm's total manufacturing costs. Required: Bio Pte Ltd is in the process of negotiating a settlement with its insurance company. Compute and determine an estimate of the cost of work in process and finished goods inventories that were destroyed by the fire. Show all workings