McGriff requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $98,000 . Purchases since January 1 were $256,000 ,freight-in $8,500 purchase returns and allowances, $5,500 . Sales are made at 20% above cost and totaled 330,000 to March 9. Goods costing $44,500 "were left undamaged by the fire; remaining goods were destroyed. " Instructions "(a) Compute the cost of goods destroyed. " Beginning Inventory Purchase Purchase return and allowance Freight-in Good available for sale Less: estimated cogs estimated ending inventory salvage good destroyed "(b) Compute the cost of goods destroyed, assuming that the gross profit is " 20% of sales. Beginning Inventory Purchase Purchase return and allowance Freight-in Good available for sale Less: estimated cogs estimated ending inventory salvage good destroyed.

Instructions
(a) Compute the cost of goods destroyed.
Beginning Inventory
Purchase
Purchase return and allowance
Freight-in
Good available for sale
Less:	estimated cogs
estimated ending inventory
salvage
good destroyed
(b) Compute the cost of goods destroyed, assuming that the gross profit is
20%	of sales.
Beginning Inventory
Purchase
Purchase return and allowance
Freight-in
Good available for sale
Less:	estimated cogs
estimated ending inventory
salvage
good destroyed