On September 22, 2021, a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin Sporting Goods Company. The following information is available from the records of the companys periodic inventory system:

Inventory, January 1, 2021	$	158,000
Net purchases, January 1 through September 22		388,000
Net sales, January 1 through September 22		640,000
Gross profit ratio		25	%

Required: Complete the below table to estimate the cost of inventory destroyed in the flood using the gross profit method.