On 24 December after the close of business, a devastating fire at Solaris Pharmaceutical destroyed the firms raw materials and finished goods inventories. The following information is available:

$

Sales revenue, 1 January to 24 December 1,980,000

Purchases, 1 January to 24 December 270,000

Direct labour cost, 1 January to 24 December 720,000

Cost of goods available for sale, 1 January to 24 December 1,500,000

Raw material inventory, 1 January 60,000

Finished goods inventory, 1 January 222,000

Gross profit margin 30%

The firms 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.