Smith Distributors, Inc., supplies ice cream parlours with various toppings for making sundaes. On November 17, 2013,
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Smith Distributors, Inc., supplies ice cream parlours with various toppings for making sundaes. On November 17, 2013, a fire caused the loss of all ingredients stored in a 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 in the accounting records of the company:
fruit toppings | Malvavisco Toppings | chocolate toppings | |||||||
Inventory, January 1, 2013 | ps | 22,000 | ps | 7,200 | ps | 3,200 | |||
Net purchases through November 17 | 160.000 | 38,000 | 12,200 | ||||||
Net sales through November 17 | 210,000 | 57,000 | 20,200 | ||||||
Historical Gross Benefit Ratio | 20 | % | 30 | % | 30 | % | |||
Calculate the estimated cost of each of the ingredients lost in the fire.
Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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