A fire destroyed a warehouse of the Goren Group, Inc., on May 4, 2018. Accounting records on that date indicated the following: Merchandise inventory, January 1, 2018 $ 1,950,000 Purchases to date 5,850,000 Freight-in 450,000 Sales to date 8,700,000 The gross profit ratio has averaged 20% of sales for the past four years. Required: Use the gross profit method to estimate the cost of the inventory destroyed in the fire.