The inventory of Hang Company was destroyed by fire on March 1. From an examination of the accounting records, the following data for the first 2 months of the year are obtained: Sales Revenue $52,200, Sales Returns and Allowances $1,500, Purchases $34,800, Freight-In $1,200, and Purchase Returns and Allowances $1,800. Determine the merchandise lost by fire, assuming:

A beginning inventory of $24,100 and a gross profit rate of 40% on net sales.

Estimated cost of merchandise lost _____ A beginning inventory of $38,700 and a gross profit rate of 31% on net sales.

Estimated cost of merchandise lost _____