Hiphone Company had a fire on March 1, 2019 that burned up a large part of its inventory. Hiphone Company uses the periodic system for its inventory valuation, and therefore had not updated its inventory general ledger account during the year. During the previous 5 full years, the company's gross profit rate has averaged 30% of net sales. Information for the January 1 - March 1, 2019 period is shown below: January 1 Inventory balance $600,000 Purchases 1,911,200 Purchase returns 25,000 13,800 Transportation in 2,425,000 Sales 18,900 Sales returns 6,100 Sales allowances The fire destroyed all but $300,000 of the inventory on hand on March 1 Required (10 marks) Use the gross profit method to determine the amount of inventory that was burnt up and destroyed by fire