Problem 8-6 (Algo) Various Inventory costing methods; gross profit ratio [LO8-1, 8-4, 8-7) Topanga Group began operations early in 2021. Inventory purchase information for the quarter ended March 31 2021. for Topanga's only product is provided below. The unit costs include the cost of freight. The company uses a periodic inventory system to report Inventory and cost of goods sold. Date of Purchase Jan. Feb. 16 March 22 Totals Units 5,000 13,000 12000 35,000 Unit Cost $5.00 6.00 7.ee Total cost $ 25, 78,00 119,00 5222,000 Sales for the quarter, all at $9 per unit, totaled 19.000 units leaving 16,000 units on hand at the end of the quartet Required: 1. Calcutate 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 andyaverage 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. Reg LA Reg 1B Req 1C Reg 2 Reg 3 Calculate Topanga's cost of goods sold for the first quarter using FIFO. Cost of Goods Sold Perioche FIFO FIFO Cost of Goods Available for Sale Cost per Cost of Goods of units unit Available for Sale 0 of units sold Cost per unit Cost of Goods Sold Ending Inventory - Periode FIFO #of units Cost per Ending in ending ant Inventory inventory 5 0.00 5 0 3 0.00 $ O 3 Beginning Inventory Purchases January 7 February 16 March 22 Total 0 0 5 $ w 5.00 0.00 7.00 0 0 $ 5,000 $5.00 13,000 $ 0.00 17.000 3: 700 25.000 25.000 78,000 110,000 222.000 5.00 0.00 7.00 3 $ 0 0 S O $ Reg 10 > 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 18 Req 1C Req 2 Req 3 Calculate Topanga's cost of goods sold for the first quarter using LIFO. Cost of Goods Sold Periodic LIED LIFO Cost of Goods Available for Sale Cost of Goods of units unit Available for Sale 0 Cost per Cost per of units sold Cost per Ending Inventory Periodic LIFO # of units Ending in ending unit Inventory inventory $ 0.00 $ 0 Cost of Goods Sold unit $ 0.00 $ 0 $ 0 $ Beginning Inventory Purchases: January 7 February 16 March 22 Total $ 0 5.000 $ 5.00 13,000 $ 6.00 17.000 $ 7.00 35,000 5.00 0.00 7.00 S 25,000 78.000 110.000 222.000 5.00 8.00 7.00 Oo oo w 0 $ $ 0 $ 0 0 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. Reg 1A Req 1B Redic Reg 2 Reg 3 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 Unit Cost of Goods #of units Cost Available for Sale Cost of Goods Sold Average cost Average of units Cost of Cost per sold Goods Sold Unit Ending Inventory - Average Cost of units Average In ending Cost per Ending inventory unit Inventory Beginning inventory Purchases January 7 February 10 March 22 Tota 3 3.000 $5.00 13.000 $ 600 17.000 $ 7.00 35.000 25,000 78.000 110,000 222.000 S $ Complete this question by entering your answers in the tabs below. Reg 1A Req 18 Req 1C Reg 2 Req3 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 0 0 FIFO LIFO Average cost 0 Reg 10 Reg 3 > each of the three inventory methods on the gross profit ratio. Complete this question by entering your answers in the tabs below. Reg 1A Reg 13 Req 1c Reg 2 Reg 3 Comment on the relative effect of each of the three inventory methods on the gross profit ratio. abon when couts are in LIFONE Confood and therefore prons proftratio than
