Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. smith distributors, inc., supplies ice cream shops

Smith Distributors, Inc., supplies ice cream shops with various toppings for making sundaes. On November...

80.2K

Verified Solution

Question

Accounting

Smith Distributors, Inc., supplies ice cream shops with various toppings for making sundaes. On November 17, 2018, a fire resulted in the loss of all of the toppings stored in one section of the warehouse. The company must provide its insurance company with an estimate of the amount of inventory lost. The following information is available from the company's accounting records:

Fruit Toppings Marshmallow Toppings Chocolate Toppings
Inventory, January 1, 2018 $ 25,000 $ 7,500 $ 3,500
Net purchases through Nov. 17 175,000 41,000 12,500
Net sales through Nov. 17 225,000 60,000 20,500
Historical gross profit ratio 18 % 25 % 30 %

Required: 1. Calculate the estimated cost of each of the toppings lost in the fire.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A jet ski depreciates 11 each year If the jet ski was 8 000 at...

Algebra
Q

When a stimulus is reinforced to continue in the same direction until a climactic event...

Biology
Q

Rotations of Shapes Date Graph the image of the figure using the transformation given List...

Geometry
Q

Car inspection: Of all the registered automobiles in Colorado, 5% fail the state emissions test....

Statistics
Q

K shifts Midpoints and quarter points are identified by dots The simplest form of an...

Calculus
Q

Solve for x X WANA CARE 63 5 1296 PETRA E BER TEHN

Algebra
Q

Your audit client, a manufacturer of surgical gloves, wants to increase the value of its...

Accounting
Q

Which of the following would be possible causes of a Favourable Fixed Overhead Expenditure Varianc...

Accounting
Q

On December 31, 2018, the end of the fiscal year, California Microtech Corporation completed the...

Accounting
Q

Homowork Help Acrubcelvermmton Use the following information for the Exercises below, [Algo] ...

Accounting
Q

21. Use the income statement and balance sheet to answer the questions below (5 points)...

Finance
Q

What should CEO do & present to the investors to convince them to invest on...

Finance