E$9\mathrm{.}15($LO $4)($Gross Profit Method$)$ Tim Legler requires an estimate of the cost of goods lost by fire on March $9.$ Merchandise on hand on January $1$ was $$38,000.$ Purchases since January $1$ were $$72,000$; freight$-$in$,$ $$3,400$; purchase returns and allowances, $$2,400.$ Sales are made at $\frac{331}{3}\%$ above cost and totaled $$100,000$ to March $9.$ Goods costing $$10,900$ were left undamaged by the fire; remaining goods were destroyed.

Instructions

a$.$ Compute the cost of goods destroyed.

b$.$ Compute the cost of goods destroyed, assuming that the gross profit is $\frac{331}{3}\%$ of sales.