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Question: Leon Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $34, 700. Purchases since January 1 were $75, 900; freight-in, $3, 300; purchase returns and allowances, $2, 400. Sales are made at 33 1/3% above cost and totaled $107, 300 to March 9. Goods costing $10, 700 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.)
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