Suppose Alpine Sportswear suffered a fire loss and needs to estimate the cost of the goods destroyed. Beginning inventory was $110,000 net purchases totaled $660,000, and sales came to $1,100,000. Alpine's normal gross margin percentage is 51%. Use the gross margin method to estimate the cost of the inventory lost in the fire.

a. $539,000

b. $231,000

c. $770,000

d. $561,000