A fire destroyed a company’s detailed records of inventory (stock) and much of the merchandise held in inventory (stock). The company accountant was able to discover that stock at the beginning of the period was £60,000, purchases up to the date of the fire were £200,000 and sales up to the date of the fire were £300,000. In the past, the company has earned a gross profit of 30 per cent of sales.

Required:

Calculate the cost of the inventory (stock) destroyed by the fire.