Your answer is partially correct. Try again. Tim Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $38,400. Purchases since January 1 were $93,340; freight-in, $4,500; purchase returns and allowances, $2,200. Sales are made at 33 1/3% above cost and totaled $147,000 to March 9. Goods costing $12,290 were left undamaged by the fire; remaining goods were destroyed. Compute the cost of goods destroyed. Cost of goods destroyed $ 85500 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 $ 23750