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:

	Fruit Toppings	Marshmallow Toppings	Chocolate Toppings
Inventory, January 1, 2021	$ 13,000	$ 6,300	$ 2,300
Net purchases through Nov. 17	150,000	29,000	11,300
Net sales through Nov. 17	165,000	48,000	19,300
Historical gross profit ratio	30%	35%	35%

Required:

Calculate the estimated cost of each of the toppings lost in the fire.

Answer rating: 100% (QA)

Requirement 1 Fruit Marshmallow Chocolate Toppings Toppings Topping Estimate of c... View the full answer