Topanga Group began operations early in 2018. Inventory purchase information for the quarter ended March 31, 2018, for Topanga's only product is provided below. The unit costs include the cost of freight. The company uses a periodic inventory system. it Cost Jan. 7 Feb. 16 Harch 22 5, 000 13,000 17,000 $5.00 s 25,000 78,000 119,000 222,000 6.00 7.00 Totals 35,000 Sales for the quarter,all at $9 per unit, totaled 19,000 units leaving 16.000 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 Toponga'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 Req 3 Calculate Topanga's cost of goods sold for the first quarter using FIFO. b. LIFO c. Average cost 2. Calculate Toponga'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 Req 3 Calculate Topanga's cost of goods sold for the first quarter using FIFO. Cost of Goods Available for Sale Cost of Goods Sold-Periodio FIFO Ending Inventory-Periodic FIFO # of units : FIFO: Cost per Available for sold Sale Cost ofGoods | # of units | Cost per Cost of ''In ending per ng # of units in ending Costper Endi unit unit Goods Sold inventory 0.00 $ S 0.00 0.00 Beginning Inventory $ 0.00 January 7 February 16 March 22 0.00 S 0.00 S 0.00 $ 0.00 Total 0 Req 1B> Sales for the quarter, all at $9 per unit, totaled 19,000 units leaving 16,000 units on hand at the end of the quarter Required: .Calculate Topanga's cost of goods sold for the first quarter using: a. FIFO b. LIFO c. Average cost 2. Calculate Toponga's gross profit ratio for the first quarter using FIFO, LIFO, and Average cost 3. Comment on the relative effect of each of the three inventory methods on the gross profit ratio. Complete this question by entering your answers in the tabs below. Req 1A Req 2 Req 3 Calculate Topanga's cost of goods sold for the first quarter using LIFO Cost of Goods Available for Sale Cost of Goods Sold-Periodic LIFO Ending Inventory-Periodic LIFO # of units i Cost per Ending unit Inventory LIFO Cost per Available for sold Sale Cost of Goods | # of units cost of! Cost per # of units unit Goods Sold in ending inventory ending unit Beginning Inventory S 0.00 0.00$ Purchases: S 0.00 January 7 February 16 March 22 S 0.00 S 0.00 S0.00 S 0.00 $ 0.00 Total Req 1A Req 1C ) Sales for the quarter, all at $9 per unit, totaled 19,000 units leaving 16,000 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 Toponga'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 bel Req 1A Req 1B Req 1C Req 2 Req 3 Calculate Topanga's cost of goods sold for the first quarter using average cost. (Round your intermediate calculations to 4 decimal places for average cost method and final answers to the nearest whole number) Cost of Goods Available for Sale Cost of Goods Sold -Average Cost Ending Inventory-Average Cost of units Unit Cost of Goods #Of units Cost #Of units! Average Average Cost Unit Available for sold #Of units Average Goods Sold in ending Cost per Ending inventoryunit Sale Beginning Inventory Purchases: January 7 February 16 March 22 Total Req 1 Req 2 > Calculate Toponga'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 1- K Req 10c Req3 > Required: 1. Calculate Topanga's cost of goods sold for the first quarter using: a. FIFO b. LIFO c. Average cost 2. Calculate Toponga'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 Req 3 Comment on the relative effect of each of the three inventory methods on the gross profit ratio. In situations when costs are rising, LIFO results in a cost of goods sold and therefore, a gross profit ratio than FIFO Req 2
