A Fire Completely Destroyed the Inventory Housed in a Warehouse

A fire completely destroyed the inventory housed in a warehouse in August.Reconstructed data follows: $\begin{array} { l } \text {Sales to date of fire }&\$340,000\\ \text {Gross margin as a percent of cost }&60\%\\ \text {Gross purchases to date of fire }&200,000\\ \text {Beginning inventory }&30,000\\ \text {Purchases returns and allowances to date of fire}&10,000\\ \text { Freight-in}&4,000\\ \text { Sales returns}&25,000\\\end{array}$
Compute the loss of inventory due to the fire.

A) $98,000
B) $54,667
C) $27,125
D) $34,456