Q2. (25 marks) Job Order costing A distraught employee, Guy Arson, put a torch to a manufacturing plant on February 26. The resulting blaze completely destroyed the plant and its contents. Fortunately, some accounting records were kept in another building. They revealed the following for the period from January 1 to February 26: Direct materials (DM) Inventory Jan 119,200 Purchases DM Jan 1 to Feb 26 192,000 Ending DM inventory Feb 26 74,400 Work in Progress (WIP) Jan 1 40,800 Cost of direct labour 216,000 Cost of Overhead use 144,000 Work in Progress Feb 26 33,600 Finished Goods (FG) Jan 136,000 Finished Goods Feb 26 30,000 Calculate the following: Cost of DM used Cost of finished goods produced Cost of goods sold Total value of DM, WIP and FG lost due to the fire Where would you classify the cost of Insurance and why