*P6.10 (LO 6) Suzuki Company lost all of its inventory in a fire on December 26, 2022. The accounting records showed the following inventory-related data for November and December.

	November	December (to 12/16)
Net sales	600,000	700,000
Beginning inventory	32,000	36,000
Purchases	389,000	420,000
Purchase returns and allowances	13,300	14,900
Purchase discounts	8,500	9,500
Freight-in	8,800	9,900
Ending inventory	36,000	?

Suzuki is fully insured for fire losses but must prepare a report for the insurance company.

Instructions

Compute the gross profit rate for November.

Using the gross profit rate for November, determine the estimated cost of the inventory lost in the fire.