Sheridan Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $34,960. Purchases since January 1 were $66,240; freight-in, $3,128; purchase returns and allowances, $2,208. Sales are made at 33 ¹/₃% above cost and totaled $102,000 to March 9. Goods costing $10,028 were left undamaged by the fire; remaining goods were destroyed.

1. Compute the cost of goods destroyed. (Round gross profit percentage and final answer to 0 decimal places, e.g. 15% or 125.)

Cost of goods destroyed

2. Compute the cost of goods destroyed, assuming that the gross profit is 33 ¹/₃% of sales. (Round ratios for computational purposes to 5 decimal places, e.g. 78.72345% and final answer to 0 decimal places, e.g. 28,987.)

Cost of goods destroyed