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 Units 5,000 13,e00 17,000 Unit Cost Total Cost $ 25,000 78,000 119,000 $222,000 Jan. 7 $5.e0 6.00 Feb. 16 March 22 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 Topanga's gross profit retio 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 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 - Periodic FIFO Ending Inventory- Periodic FIFO FIFO Cost of Goods Available for Sale Cost per # of units sold # of units in ending inventory Cost per Cost of Goods Sold Cost per unit Ending Inventory # of units unit unit Beginning Inventory 0 $ 0.00 $ 0 $ 0.00 $ 0 Purchases: January 7 0 $ 0.00 0 $ 0.00 0 February 16 0 $ 0.00 $ 0.00 0 March 22 0 0.00 0 0.00 Total 0 $ 0 0 0 $ 0 Req 1A Req 1B Req 1C 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 LIEO Cost per unit Cost of Goods Available for Sale # of units sold # of units in ending inventory Cost per Cost of of units Cost per unit Ending Inventory unit Goods Sold Beginning Inventory $ 0 $ 0.00 S 0 $ 0.00 0 Purchases: January 7 0 $ 0.00 0 $ 0.00 0 February 16 0 0.00 0 $ 0.00 0 March 22 0 S 0.00 0 0.00 0 Total S 0 0 0 0 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 average cost per unit to 4 decimal places.) Cost of Goods Available for Sale Cost of Goods Sold Average Cost Ending Inventory-Average Cost Average Cost Cost of Goods Average Cost per Unit # of units Unit Cost # of units sold Cost of Goods Sold Average Cost per unit Ending Inventory # of units Available for Sale in ending inventory Beginning Inventory Purchases: January 7 February 16 March 22 Total 0 0 S $ 0 Req 1A Req 1B Req 1C Req 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 0 LIFO 0 Average cost 0 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
