1 +1 INVENTORY DESTROYED BY FIRE A fire destroys all of the merchandise in the company's warehouse. Below is the information compiled up to the date of the fire. Inventory at beginning of the year Sales Purchases $ 1,500 3,200 1,340 200 160 20 40% Inventory in store (not warehouse) Freight charges on inventory Gross profit percentage At time of the fire (at retail) Calculate the cost of the inventory destroyed in the fire. 200 400