Lids has three lines of hats: baseball, winter, and fashion. On May 18, 2023, Lids had a fire that destroyed the baseball hat inventory. Sales for the period January 1 to May 18 for the baseball hats were $800,000. Inventory at January 1, 2023, for the baseball hats was $95,000 (cost), $285,000 (retail). Purchases made from January 1 to May 18 for the baseball hats at cost were $240,000, and at retail were $720,000. Use the retail method to calculate the cost of the inventory lost in the fire.