Question 2 On 11 December after the close of business, a devastating fire at Biopharm 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 1,980,000 Purchases, 1 January to 11 December 300,000 Income before taxes, 1 January to 11 December 408,000 Direct labour cost, 1 January to 11 December 720,000 Cost of goods available for sale, 1 January to 11 December 1,650,000 Raw material inventory, 1 January 60,000 Work in process inventory, 1 January 126,000 Finished goods inventory, 1 January 222,000 Gross profit margin 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: Biopharm 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