Over the past four years the gross profit rate for Otterson Company was 34%. Last week a fire destroyed all of Otterson's inventory. Luckily, all the records for Otterson were in a fireproof safe and indicated the following facts:
Inventory (January 1, 201X)..................$ 39,300
Sales...............................................128,300
Sales Returns.......................................3,600
Purchases..........................................77,500
Purchases Returns and Allowances.............2,600
Estimate the cost of inventory that was lost in the fire.