Date of Purchase Jan. 7 Feb. 16 March 22 Totals Units 8,000 24,000 28,000 60,000 Unit Cost $5.00 6.00 Total Cost $ 40,000 144,000 196,000 $380,000 7.00 Sales for the quarter, all at $9 per unit, totaled 33,000 units leaving 27,000 units on hand at the end of the quarter. Required: 1. Calculate Topanga's cost of goods sold for the first quarter using: a. FIFO b. LIFO C. Average cost 2. Calculate Topanga's gross profit ratio for the first quarter using FIFO, LIFO, and Average cost. 3. Comment on the relative effect of each of the three inventory methods on the gross profit ratio. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Reg 2 Req3 Calculate Topanga's cost of goods sold for the first quarter using FIFO. Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO FIFO: Cost per # of units Cost per cost of Goods Available for Sale # of units sold Cost of Goods Sold Ending Inventory - Periodic FIFO # of units Cost per Ending in ending unit Inventory inventory $ 0.00 unit unit 0 $ 0.00 $ 5.00 $ 5.00 Beginning Inventory Purchases: January 7 February 16 March 22 Total $ 6.00 $ 8,000 S 5.00 24,000 S 6.00 28,000 $ 7.00 60,000 40,000 144,000 196,000 380,000 6.00 7.00 $ 7.00 $ $ Date of Purchase Jan. 7 Feb. 16 March 22 Totals Units 8,000 24,000 28,000 60,000 Unit Cost $5.00 6.00 7.00 Total Cost $ 40,000 144,000 196,000 $380,000 Sales for the quarter, all at $9 per unit, totaled 33,000 units leaving 27,000 units on hand at the end of the quarter. Required: 1. Calculate Topanga's cost of goods sold for the first quarter using: a. FIFO b. LIFO C. Average cost 2. Calculate Topanga's gross profit ratio for the first quarter using FIFO, LIFO, and Average cost. 3. Comment on the relative effect of each of the three inventory methods on the gross profit ratio. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Reg 1C Reg 2 Req3 Calculate Topanga's cost of goods sold for the first quarter using LIFO. LIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO Cost per Cost of Goods # of units # of units Cost of Cost per Available for unit Sale sold unit $ 0 ol $ 0.00 Ending Inventory - Periodic LIFO # of units in ending Cost per Ending unit Inventory Goods Sold inventory $ 0.00 $ $ Beginning Inventory Purchases: January 7 February 16 March 22 Total 5.00 6.00 5.00 6.00 $ $ 8,000 $ 5.00 $ 24,000 $ 6.00 28,000 $ 7.00 60,000 40,000 144,000 196,000 380,000 $ 7.00 $ 7.00 $ Date of Purchase Jan. 7 Feb. 16 March 22 Units 8,000 24,000 28,000 60,000 Unit Cost $5.00 6.00 7.00 Total Cost $ 40,000 144,000 196,000 $380,000 Totals Sales for the quarter, all at $9 per unit, totaled 33,000 units leaving 27,000 units on hand at the end of the quarter. Required: 1. Calculate Topanga's cost of goods sold for the first quarter using: a. FIFO b. LIFO C. Average cost 2. Calculate Topanga's gross profit ratio for the first quarter using FIFO, LIFO, and Average cost. 3. Comment on the relative effect of each of the three inventory methods on the gross profit ratio. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Req 2 Req3 Calculate Topanga's cost of goods sold for the first quarter using average cost. (Round average cost per unit to 4 decimal places.) Average Cost Cost of Goods Available for Sale Cost of Goods Sold - Average Cost Average Cost of Goods Unit Cost of # of units # of units Available for Cost Cost per sold Sale Unit Goods Sold Ending Inventory - Average Cost # of units Average in ending Cost per Ending Inventory inventory unit Beginning Inventory Purchases: January 7 February 16 March 22 Total 8,000 $ 5.00 $ 24,000 $ 6.00 28,000 $ 7.00 60,000 $ 40,000 144,000 196,000 380,000 Req 1B Req 2 > Date of Purchase Jan. 7 Feb. 16 March 22 Units 8,000 24,000 28,000 60,000 Unit Cost $5.00 6.00 7.00 Total Cost $ 40,000 144,000 196,000 $380,000 Totals Sales for the quarter, all at $9 per unit, totaled 33,000 units leaving 27,000 units on hand at the end of the quarter. Required: 1. Calculate Topanga's cost of goods sold for the first quarter using: a. FIFO b. LIFO C. Average cost 2. Calculate Topanga's gross profit ratio for the first quarter using FIFO, LIFO, and Average cost. 3. Comment on the relative effect of each of the three inventory methods on the gross profit ratio. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 1C Reg 2 Req 3 Calculate Topanga's gross profit ratio for the first quarter using FIFO, LIFO, and Average cost. Choose Numerator: + Choose Denominator: = Gross Profit Ratio = Gross profit ratio FIFO LIFO Average cost + =
