On December 31, 2019 Kenton Company's inventory burned. Sales and purchases for the year had been $1,200,000 and $850,000, respectively. The beginning inventory (Jan. 1, 2019) was $130,000; in the past Kenton's gross profit has averaged 30% of selling price.

Required:

Ms. Kenton, the CFO, requested a labeled schedule computing the estimated cost of inventory burned, e.g., illustrate how you arrived at your estimate.