Wildhorse Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $47,120. Purchases since January 1 were $89,280; freight-in, $4,216; purchase returns and allowances, $2,976. Sales are made at 33 ¹/₃% above cost and totaled $147,000 to March 9. Goods costing $13,516 were left undamaged by the fire; remaining goods were destroyed.

a) 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

b). Compute the cost of goods destroyed, assuming that the gross profit is 33 1/3% of sales.