On March $17,2024,$ a flood destroyed the entire inventory of Beatty Company. The following information is available from its accounting records:

Inventory, January $1,2024$ $ $208,000$

Purchases, January $1$ March $17420,000$

Sales, January $1$ March $17600,000$

Normal gross margin $40\%$

Required:

Compute the estimated cost of inventory lost in the flood.On March $17,2024,$ a flood destroyed the entire inventory of Beatty Company. The following information is available from its

accounting records:

Inventory, January $1,2024$

Purchases, January $1-$ March $17$

Sales, January $1-$ March $17$

Normal gross margin

$$208,000$

$420,000$

$600,000$

$40\%$

Required:

Compute the estimated cost of inventory lost in the flood.

Estimated inventory