Leon Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $40,100. Purchases since January 1 were $68,400; freight-in, $3,100; purchase returns and allowances, $2,100. Sales are made at 33 1/3% above cost and totaled $94,900 to March 9. Goods costing $11,100 were left undamaged by the fire; remaining goods were destroyed.
Compute the cost of goods destroyed.
Compute the cost of goods destroyed, assuming that the gross profit is 33 1/3% of sales.