Gross Profit Method The inventory was destroyed by fire on December 31. The following data were obtained from the accounting records Jan. 1 Inventory Jan. 1 - Dec. 31 $243,000 1,629,000 2,600,000 Sales (net) Estimated gross profit rate 36% a. Estimate the cost of the inventory destroyed. Estimated Cost of Merchandise Destroyed b. Which method is used to estimate inventory cost in case of inventory destroyed by fire