Answers
1. Cost of goods destroyed = Beginning Inventory + Purchases - purchase returns and allowances + freight-in - Cost of goods sold - undamaged goods
= $40100+70700-2300+3200 - 108200/1.3333 - 9900
= $20,650
2. Cost of goods destroyed = Beginning Inventory + Purchases - purchase returns and allowances + freight-in - Cost of goods sold - undamaged goods
= $40100+70700-2300+3200 - 108200*66.6666% - 9900
= $29667
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