Smith Distributors, Inc., supplies ice cream shops with various toppings for making sundaes. On November 17, 2018, 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 estimete of the amount of inventory lost. The following information is available from the company's accounting records Inventory, January 1, 2018 Het purchases through Nov. 17 Bet sales through Mov. 17 Historical gross profit ratio Required: Toppings Toppings $19,000 Fruit Marshmallow Chocolate Toppings 6,900 62,909 145,000 35,000 195,000 54,000 11, 900 19,900 251 301 359 1. Calculate the estimated cost of each of the toppings lost in the fire. Estimated cost of Toppings lost inventory Fruit Marshmallow Forester Company has five products in its inventory, Information about the December 31, 2018, inventory follows. Unit Unit Unit Replacement Selling Product Quantity Cost Cost Price 500 #10 620 624 B 800 23 19 26 C 700 11 10 16 D 800 15 12 141 E 700 22 20 21 The cost to sell for each product consists of a 10 percent sales commission. The normal profit percentage for each product is 40 percent of the selling price. Required: 1. Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applied to individual products 2e. Determine the carrying value of inventory at December 31, 2018, assuming the LCM rule is applied to the entire inventory. 2b. Assuming inventory write-downs are usual business practice for Forester, record any necessary year-end adjusting entry Req 1 Req 2A Req 2B Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or market (LCM applied to individual products. (Do not round intermediate calculations.) Product (units) RC A (500) B (800) C (700) D (800) E (700) NRV NRV-NP Market Inventory Cost Value Total Ron Req 2A > Req 1 Req 2A Req 2B Determine the carrying value of inventory at December 31, 2018, assuming the LCM rule inventory. (Do not round intermediate calculations.) Inventory carrying value Record any necessary year-end adjusting entry assuming that inventory write-downs are common for Forester Company. Note: Enter debits before credits. Event 1 General Journal Debit Credit