The inventory of Splash Inc. 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 $52,500, Sales Returns and Allowances $1,400, Purchases $34,500, Freight-In $1,400, and Purchase Returns and Allowances $1,600. Determine the merchandise lost by fire, assuming:

1. A beginning inventory of $20,000 and a gross profit rate of 45% on net sales.

Estimated cost of merchandise lost

2. A beginning inventory of $38,500 and a gross profit rate of 30% on net sales.

Estimated cost of merchandise lost