On July 5, 2006, a fire destroyed the entire inventory of Kinard Music Mart. The following information is available from its accounting records:

Inventory, January 1, 2006 .....................$211,000

Purchases, Jan 1- July 5 ............................500,000

Sales, Jan 1 - July 5 ..................................900,000

Normal Gross Margin.....................................30%

Required:

Compute the estimated cost of inventory lost in the fire.