An explosion at Fenshaw’s Pharmaceuticals on the night of 15 May destroyed the entire inventory. The accounting records, which survived the explosion, contained the following account balances for the period 1 January to 15 May:

Sales Sales returns and allowances Purchases Purchases returns and allowances Freight inwards Inventory balance, 1 January

$330700 4200 285000 3150 2400 59300

The gross profit margin has averaged 42% over the last 3 years. Ignore GST.

Required

Estimate the cost of the inventory that was destroyed, for insurance purposes.