A flood destroyed a company's warehouse contents on September 12. The following information was the only information that was salvaged: 1. Inventory, beginning: $29,400 2. Purchases for the period: $18,400 3. Sales for the period: $56,400 4. Sales returns for the period: $840 The company's average gross profit ratio is 26%. What is the estimated cost of the lost inventory using the gross profit method