A company's warehouse contents were destroyed by a flood on September 12. The following information was the only information that was salvaged:

1.	Inventory, beginning: $28,000
2.	Purchases for the period: $17,000
3.	Sales for the period: $55,000
4.	Sales returns for the period: $700

The company's average gross profit ratio is 35%. What is the estimated cost of the lost inventory?