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

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Accounting

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 $ 19,000 $ 6,900 $ 2,900
Net purchases through Nov. 17 145,000 35,000 11,900
Net sales through Nov. 17 195,000 54,000 19,900
Historical gross profit ratio 25 % 30 % 35 %

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

Fruit?

Marshmellow?

Chocolate?

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