Wildhorse requires an estimate of the cost of goods lost by fire on March $9.$ Merchandise on hand on January $1$ was $$72,000.$

Purchases since January $1$ were $$132,000$; freight$-$in$,$ $$6,600$; purchase returns and allowances, $$4,700.$ Sales are made at $25\%$ above

cost and totaled $$197,000$ to March $9.$ Goods costing $$20,200$ were left undamaged by the fire; remaining goods were destroyed.

$($a$)$

Your answer is correct.

Compute the cost of goods destroyed.

Cost of goods destroyed $

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$($b$)$

Compute the cost of goods destroyed, assuming that the gross profit is $25\%$ of sales.

Cost of goods destroyed

$

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