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2.21 Fire loss, computing stock costs (30-40 minutes) A distraught employee, Guy Pirault-Manne, put a torch to a manufacturing plant on a blustery day, 26 February 2015. The resulting blaze completely destroyed the plant and its contents. Fortunately, certain accounting records were kept in another building. They revealed the follow- ing for the period from 1 January 2015 to 26 February 2015: Exercises 53 Direct materials purchased E3.2 million Work in progress, 1 January 2015 E680 000 Direct materials, 1 January 2015 6320 000 Finished goods, 1 January 2015 E600 000 Indirect manufacturing costs 40% of conversion costs Revenues C10 million Direct manufacturing labour E3.6 million Prime costs 65.88 million Gross margin percentage based on sales 20% Cost of goods available for sale 69 million The loss was fully covered by insurance. The insurance company wants to know the historical cost of the stocks as one factor considered when negotiating a settlement. Required Calculate the cost of: 1 Finished goods stock, 26 February 2015. 2 Work-in-progress stock, 26 February 2015. 3 Direct materials stock, 26 February 2015