Ivanhoe requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $82,000. Purchases since January 1 were $137,000; freight-in, $6,700; purchase returns and allowances, $4,900. Sales are made at 25% above cost and totaled $205,000 to March 9. Goods costing $20,700 were left undamaged by the fire; remaining goods were destroyed.
(a)
Compute the cost of goods destroyed.
Cost of goods destroyed
$
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(b)
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