Problem 3: Gross profit inventory estimation method Tim Legler requires an estimate of the cost of goods lost by fire on March 9. Meto! nand on January I was $38,000. Purchases since January 1 were $72,000; treignte, w purchase returns and allowances, $2,400. Sales totaled $100,000 to March 9 and the gross promt percentage equals 25%. Goods costing $10.900 were left undamaged by the fire; remaining goods were destroyed. Instructions 1) Compute the cost of goods destroyed 2) Compute the cost of goods destroyed assuming 25% is markup on cost rather than a profit percentage