3. Josh Jones requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand January 1 was $45,000. Purchases since January 1 were $80,000 Freight-in, $3,500 purchase returns and allowances, $1,500. Sales are made at 25% above cost and totaled $125,000 to March 9. Goods costing $8,600 were left undamaged by the fire Remaining goods were destroyed. Instructions: Compute the cost of the goods destroyed using the gross profit method. 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 33 1/3% 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 33 1/3%, COGS = 66 2/3% * Sales) 4. Assume the same facts as in question #3 above, except the company's markup is 25% of sales. Instructions: Compute the cost of the goods destroyed using the gross profit method. 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 33 1/3% 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 33 1/3%, COGS = 66 2/3% * Sales)