Tim Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $66,330. Purchases since January 1 were $124,210; freight-in, $8,150; purchase returns and allowances, $5,750. Sales totaled $132,400 to March 9. Goods are marked up at 27% of retail. All goods were destroyed by a fire. You need to estimate the ending inventory using the Gross Profit Method. (a) Compute the ending inventory.

Cost of goods destroyed

$