E9-15 (Gross Profit Method) Zidek Corp, requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $38,000. Purchases since January 1 were $92,000, freight-in, 3,400, purchase retums and allowances $2,400. Sales are made at 33%% above cost and totaled $120,000 to March 9. Goods costing $10,900 were left undamaged by the fire; remaining goods were destroyed Instructions (a) Compute the cost of goods destroyed. (b) Compute the cost of goods destroyed, assuming that the grow profit is 33%% of sales