Southern Distributors, Incorporated, supplies ice cream shops with various toppings for making sundaes. On November 17, 2024, 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, 2024 Net purchases through November 17 Net sales through November 17 Historical gross profit ratio Fruit Toppings Fruit Marshmallow Chocolate Toppings Toppings Toppings $ $ 7,900 $ 3,900 29,000 195,000 45,000 Marshmallow Chocolate 245,000 15% Estimated cost of lost Inventory 64,000 25% 1. Calculate the estimated cost of each of the toppings lost in the fire. 12,900 20,900 30%

Southern Distributors, Incorporated, supplies ice cream shops with various toppings for making sundaes. On November 17, 2024, 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, 2024 Net purchases through November 17 Net sales through November 17 Historical gross profit ratio Fruit Toppings Fruit Marshmallow Chocolate Toppings Toppings Toppings $ $ 7,900 $ 3,900 29,000 195,000 45,000 Marshmallow Chocolate 245,000 15% Estimated cost of lost Inventory 64,000 25% 1. Calculate the estimated cost of each of the toppings lost in the fire. 12,900 20,900 30%

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 14E: Refer to the information in E22-13. Required: Prepare the correcting journal entries if the company...

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