Kaysee Store’s inventory is destroyed by a fire on September 5, 2011. The following data for year 2011 are available from the accounting records. Estimate the cost of the inventory destroyed.
Jan. 1 inventory . . . . . . . . . . . . . . . . . . . . . . . . . .$230,000
Jan. 1 through Sept. 5 purchases (net) . . . . . . . . $492,000
Jan. 1 through Sept. 5 sales (net) . . . . . . . . . . . . $850,000
Year 2011 estimated gross profit rate . . . . . . . . . 37%