How do I tabulate the last 2 production defect info. based on date of manufacturing per location, per product and per defect?

There are two production units, one in the US and one in Australia. The US plant produces Food and Drinks while the Australian plant produces Food and Stationeries. I have a table that consists of the product ID, date of manufacturing of the products, defects in the products and the cost of defects in USD for each of these defects. The table is as shown below.

I am looking to create a new table which will show the latest 2 rows per location per product and per defect based on the date of manufacturing. The output table should like something like this.

Also, I'm trying to obtain a visual where I can see the consolidated defect costs for the latest 2 rows per location per product and per defect based on the date of manufacturing. The output will be as such.

I tried using the topn formula but I can't seem to get the right answer at all.

I am diving your question in 2 part :

1st part : create a new table which will show the latest 2 rows per location per product and per defect based on the date of manufacturing

You need to calculate the rank in your main table using a calculated column :

Rank = 
RANKX(
  FILTER(
    ALL('Manufacturers Table'),
    'Manufacturers Table'[Location] = EARLIER('Manufacturers Table'[Location])
    && 'Manufacturers Table'[Product] = EARLIER('Manufacturers Table'[Product])
    && 'Manufacturers Table'[Defect] = EARLIER('Manufacturers Table'[Defect])
  ),
  'Manufacturers Table'[Date of manufacturing],
  ,
  DESC,
  Dense
)

Then create a calculated table where you mention the rank as condition to filter :

LatestDefects = 
CALCULATETABLE(
  'Manufacturers Table',
  FILTER(
    'Manufacturers Table',
    'Manufacturers Table'[Rank] <= 2
  )
)

2nd part : Obtain a visual where I can see the consolidated defect costs for the latest 2 rows per location per product and per defect based on the date of manufacturing In the calculated table, create the measure :

Sum of Top 2 Defect Costs = 
CALCULATE(
  SUM('YourRankedTableName'[Cost of Defect in USD]),
  'YourRankedTableName'[Rank] <= 2
)