A fire destroyed the inventory of Bronk Supplies, but the accounting records were saved. The beginning inventory

Question:

A fire destroyed the inventory of Bronk Supplies, but the accounting records were saved. The beginning inventory was $31,500, purchases for the period were $68,250, and sales were $120,000. Bronk's customary gross margin is 40 percent of sales. Use the gross margin method to estimate the cost of the inventory destroyed by the fire.