The following information is available for October for Jackie Gleason, Inc. Beginning inventory $380,000 Net purchases 1,140,000 Net sales 2,280,000 Percentage markup on cost 66.67% A fire destroyed Gleason's October 31 inventory, leaving undamaged inventory with a cost of $22,800. Using the gross profit method, the estimated ending inventory destroyed by fire is $760,000 $608,000 $129,200 $585,200