Topanga Group began operations early in 2016. Inventory purchase information for the quarter ended

Problem 86 Various inventory costing methods; gross prot ratio [LOB-1, 8-4, 8-7] Topanga Group began operations early in 2016. Inventory purchase information for the quarter ended March 31, 2016, for Topanga's 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 7,000 $4.00 $ 28,000 Feb. 16 16.000 5.00 80,000 March 22 20,000 6.00 120,000 Totals 43,000 $228,000 Sales for the quarter, all at $9 per unit, totaled 25,000 units leaving 18,000 units on hand at the end of the quarter. Required: 1. Calculate Topanga's gross prot ratio for the rst quarter using the following inventory methods. (Round your intermediate calculations to 4 decimal places for average cost method and final answers to the nearest whole number.) Beginning Inventory 53 0.00 $ 0 $ 0.00 $ 0 Purchases: January 7 0 $ 0.00 0 February 16 0 $ 0.00 0 March 22 0 $ 0.00 0 Total 0 0 $ 0 \fGross prot ratio LIFO Average cost 2. Comment on the relative effect of each of the three inventory methods on the gross prot ratio