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

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