Suppose Rockey Mountain Sportswear (RMS) suffered a fire loss and needs to estimate the cost of the goods destroyed. Beginning inventory was \(\$ 100,000\), net purchases totaled \(\$ 600,000\), and sales came to \(\$ 1,000,000\). RMS's normal gross profit percentage is \(50 \%\). Use the gross profit method to estimate the cost of the inventory lost in the fire.

a. \(\$ 350,000\)

b. \(\$ 300,000\)

c. \(\$ 250,000\)

d. \(\$ 200,000\)