Over the past 4 years, the gross profit rate for Bachand Company was 25%. Last week a fire destroyed all of Bachand's inventory. Luckily, all the records for Bachand were in a fireproof safe and indicated the following facts:
Inventory (January 1, 201X)................$ 38,800
Sales.............................................128,800
Sales Returns......................................3,000
Purchases.........................................78,200
Purchases Returns and Allowances............2,400
Estimate the cost of inventory that was lost in the fire.