Topanga Group began operations early in 2013. Inventory purchase information for the quarter ended March 31, 2013, for Topangas only product is provided below. The unit costs include the cost of freight. The company uses a periodic inventory system.

Date of Purchase	Units			Unit Cost			Total Cost
Jan. 7		8,000		$	5.00		$	40,000
Feb. 16		24,000			6.00			144,000
March 22		28,000			7.00			196,000
Totals		60,000					$	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 the Topanga's gross profit ratio for the first quarter using the following inventory methods: (Round your intermediate calculations to 4 decimal places for average cost method.)

2.	Comment on the relative effect of LIFO and FIFO inventory methods on the gross profit ratio.