Please answer by 7pm ET
Pharoah Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $43,320. Purchases since January 1 were $82,080; freight-in, $3,876; purchase returns and allowances, $2,736. Sales are made at 33 1/3% above cost and totaled $132,000 to March 9. Goods costing $12,426 were left undamaged by the fire; remaining goods were destroyed.
(a) Compute the cost of goods destroyed. = $15,114
(b) Compute the cost of goods destroyed, assuming that the gross profit is 33 1/3% of sales. = ?