# Tim-Legler-requires-an-estimate-of-the-cost-of-goods-lost-by-fire-on-March-9-accounting-homework-help

Could you assist me with this (1) accounting problem and a breakdown of how the problem is completed by 5pm today 7/17/16?

Tim Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was \$38,110. Purchases since January 1 were \$92,740; freight-in, \$4,400; purchase returns and allowances, \$2,300. Sales are made at 33 1/3% above cost and totaled \$131,400 to March 9. Goods costing \$11,010 were left undamaged by the fire; remaining goods were destroyed.

(a) Compute the cost of goods destroyed.

Cost of goods destroyed

\$___________________________

(b) Compute the cost of goods destroyed, assuming that the gross profit is 33 1/3% of sales. (Round ratios for computational purposes to 5 decimal places, e.g. 78.72345% and final answer to 0 decimal places, e.g. 28,987.)

Cost of goods destroyed

\$________________________________

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