Tillman, Inc, bills its only branch for merchandise shipments at a markup of 20% above home office cost .the branch sells the merchandise at markup of 10% above billed price.

Shortly after the close of business on January 20, 1999, some of the branch merchandise was destroyed by fire. The following additional information is available:

• Inventories, Jan. 1 (at billed prices from home office) 20,000$
• Inventories Jan. 20, of merchandise not destroyed (at selling prices) 6,150
• Shipments from home office Jan. 1 to 20 (at billed prices) 60,000
• Sales from Jan. 1 to 20 48,000
• Sales returns from Jan. 1 to 28 (merchandise actually returned) 2,000
• Sales allowances from Jan. 1 to 20 (price adjustments) 700

Compute the estimated cost (to the home office) of the merchandise destroyed by fire at the branch of Tillman on January 20, 1999.