Adams Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $41,800. Purchases since January 1 were $77,000; freight-in, $3,400; purchase returns and allowances, $2,200. Sales are made at 33 1/3% above cost and totaled $94,700 to March 9. Goods costing $11,200 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.) Cost of goods destroyed $b. Compute the cost of goods destroyed, assuming that the gross profit is 33 1/3% of sales.

Lost inventory when sales is 133.33% of costs of sale is $$37,773.00

Lost inventory when profit is 33.33% of sales  is $45,664.00  

Explanation:

Opening merchandise                                                 $41,800

Purchases                                                                      $77,000

Carriage-inwards(freight-in)                                            $3,400

returns and allowances                                                    ($2,200)

Costs of goods available for sale                                     $120,000

Sales                                                          $94,700

Gross profit($94,700*33.33%/133.33%)  ($23,673)

Cost of goods sold                                   $71,027                                      

closing inventory($120,000-$71,027)                              $48,973.00  

Inventory left fire outbreak                                               ($11,200.00)

inventory lost to fire                                                            $37,773.00  

If gross profit is 33.33% of sales

Opening merchandise                                                 $41,800

Purchases                                                                      $77,000

Carriage-inwards(freight-in)                                            $3,400

returns and allowances                                                    ($2,200)

Costs of goods available for sale                                     $120,000

Sales                                                          $94,700

Gross profit($94,700*33.33%/100.00%)  ($31,564)  

Cost of goods sold                                   $63,136                                      

closing inventory($120,000-$63,136)                             $ 56,864.00  

Inventory left fire outbreak                                               ($11,200.00)

inventory lost to fire                                                           $45,664.00  

if it is for a job, then you should learn everything you can about the job, like what does it involve, what qualification is required and how you are the right person for that job. dress appropriately for the interview. get plenty of rest the night before. good luck!

a. primarily outdoors, responding to emergencies and protecting people.

have a nice day!