Alan Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $39,700. Purchases since January 1 were $68,100; freight-in, $3,600; purchase returns and allowances, $2,500. Sales are made at 33 1/3% above cost and totaled $90,100 to March 9. Goods costing $11,900 were left undamaged by the fire; remaining goods were destroyed.

Compute the cost of goods destroyed, assuming that the gross profit is 33 ¹/₃% of sales.

Alan Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $39.700. Purchases since January 1 were s58,100: freight-in, $3,600; purchase returns and allowances, $2,500. Sales are made at 33 2/3% above cost and totaled $90,100 to March 9. Goods costing 11, were left undamaged by the rire: remaining goods were destroyed. 900 (a) (b) x Your answer is incorrect. Try again. Compute the cost of goods destroyed, assuming that the gross profit is 32 3/3% of sales. (Round ratios for computational purposes to 5 decimal places, e.g. 78.72345% and final answer to o decimal places, e.g. 28,987.) Cost of goods destroyed