On February 26 a hurricane destroyed the entire inventory stored in a warehouse owned by the Rockford Corporation. The following information is available from the records of the companys periodic inventory system: beginning inventory, $295,000; purchases and net sales from the beginning of the year through February 26, $550,000 and $750,000, respectively; gross profit ratio, 35%. Estimate the cost of the inventory destroyed by the hurricane using the gross profit method.

Beginning inventory
Plus: Net purchases
Cost of goods availabel for sale
Less: Cost of goods sold
Net sales
Less: Estimated gross profit
Estimated cost of goods sold
Estimated cost of inventory destroyed