WA : 35 EM Clipboard Font K6 Alignment ABC D E F G 1 McGriff requires an estimate of the cost of goods lost by fire on March 9. 2 Merchandise on hand on January 1 was $99,000 3 Purchases since January 1 were $256,000 freight-in $8,500 4 purchase returns and allowances, $5,500 Sales are made at 25% 5 above cost and totaled 330,000 to March 9. Goods costing $44,500 6 were left undamaged by the fire; remaining goods were destroyed. 8 Instructions 9 (a) Compute the cost of goods destroyed. 10 11 Beginning Inventory 12 Purchase 13 Purchase return and allowance 14 Freight-in 15 Good available for sale 16 Less: estimated cogs 17 estimated ending inventory 18 salvage 19 good destroyed LCNRY Gross Profit Retail inventory pod destroyed (b) Compute the cost of goods destroyed, assuming that the gross profit is 25% of sales 7 Beginning Inventory 8 Purchase 29 Purchase return and allowance 30 Freight-in 31 Good available for sale 32 Less e stimated cogs 33 estimated ending inventory 34 salvage 35 good destroyed LCNRV Gross Profit Retail Inventory