McGriff requires an estimate of the cost of goods lost by fire on March 9. $85,500 $269,000 freight-in Sales are made at Merchandise on hand on January 1 was Purchases since January 1 were purchase retums and allowances, above cost and totaled $7,500 350,000 to March 9. Goods costing were left undamaged by the fire; remaining goods were destroyed. 5 Instructions (a) Compute the cost of goods destroyed. -7 Beginning Inventory Purchase Purchase retum and allowance Freight-in Good available for sale Less: 3 Purchase 8 11 estimated cogs estimated ending inventory salvage good destroyed Purchase retum and allowance 0 Freight-in 1 Good available for sale 2 Less: estimated cogs 3 estimated ending inventory 4 salvage 5 good destroyed 6 39 10 (b) Compute the cost of goods destroyed, assuming that the gross profit is 15% of sales. Beginning Inventory $8,400 15% $14,900