3. The following information is available for October for Dubai Company.

Beginning inventory $700,000

Net purchases 2,100,000

Net sales 4,200,000

Percentage markup on cost 66.67%

A fire destroyed Dubais October 31 inventory. Using the gross profit method, what the estimated ending inventory destroyed by fire.

4. The following information is available for October for UAE Company.

Beginning inventory $500,000

Net purchases 1,200,000

Net sales 2,400,000

Percentage markup on sale 30%

A hurricane destroyed UAEs May 31 inventory. Using the gross profit method, what is the cost of the estimated ending inventory destroyed by fire?