On April 25, 2020, a flash flood destroyed one of High River Company’s warehouses, including all of the inventory inside. The flood did not affect the inventory held at the company’s other locations. The accounting records were kept at High River’s head office in Canmore, Alberta. A search through the records revealed the following information:

Purchases up to April 25 ................................................    $   742,500

Cost of inventory on hand, January 1 ...........................    $   137,200

Sales up to April 25 .........................................................    $1,028,000

Cost-to-sales ratio for 2020 ...........................................                65%

A count of inventory on hand at the other locations revealed that inventory costed at $121,300 was on hand.

Required

Estimate the cost of the inventory that was destroyed in the flash flood.