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