Smith Distributors, Inc., supplies ice cream shops with various toppings for making sundaes. On November...
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Smith Distributors, Inc., supplies ice cream shops with various toppings for making sundaes. On November 17, 2021, 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: Inventory, January 1, 2021 Net purchases through Nov. 17 Net sales through Nov. 17 Historical gross profit ratio Fruit Toppings $ 30,000 200,000 250,000 15% Marshmallow Toppings $ 8,000 46,000 65,000 25% Chocolate Toppings $ 4,000 13,000 21,000 30% Required: 1. Calculate the estimated cost of each of the toppings lost in the fire. Estimated cost of Toppings lost inventory Fruit Marshmallow Chocolate
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