3. C. Lion requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand January 1 was $60,000. Purchases since January 1 were $115,000; freight-in, $5,000; purchase returns and allowances, \$9,000. Sales are made at 60\% above cost and totaled \$175,000 to March 9. Goods costing $11,000 were left undamaged by the fire; remaining goods were destroyed. Instructions: Compute the cost of the goods destroyed using the gross profit method. Round percentages to 2 decimal places and dollar amounts to the nearest whole The formulas for determining COGS below might be helpful: markup on cost: to get COGS, divide Sales by 1+ markup \% (i.e. sales/1.33333 if the markup is 331/3% on cost) markup on sales: to get COGS, subtract the markup \% from 100\% and then multiply by sales (i.e. if markup on sales is 331/3\%, COGS =662/3% * Sales)