The Golden Company adopted the dollar-value retail LIFO method on January 1, 2007. The following information relates to the following 2 years:

In addition the following price indexes are available:
January 2007 ........100
December 2007 .......106
September 2008 ......110
On September 8, 2008 a fire destroyed the inventory except for goods in transit (properly recorded), FOB shipping point, at a cost of $8,000, and undamaged goods salvaged from the fire, which had a retail value of $10,000.

Required
Compute the cost of the inventory destroyed in thefire.

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2008 (through September 7) Cost 2007 Cost Retail Retail Inventory, Janary40,000 9 90,000 Purchases Purchases Sales Net markups Net markdowns $160,000 $350,000 280,000 40,000 70,000 210,000 Sales 200,000 Net markups 100,000 20,000 Net markdowns 40,000