ESTIMATING ENDING INVENTORY. The owner of Charleston Furniture Gallery wants to estimate the cost of the firm’s inventory that was lost when the store was completely destroyed by a hurricane in September 19x0. Since the firm’s accounting records were maintained in duplicate on a computer tape stored in an undamaged bank vault, the following data are available:

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Normal gross margin rate 60% 19x0 sales $2,456,800 Inventory, 1/1/x0 103,200 1,005,300 19x0 purchases REQUIRED: Compute the cost of the inventory lost in the hurricane.