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. 7 Feb. 16 March 22 Totals Units 3,000 Unit Cost $2.00 19,000 3.00 23,000 4.00 45,000 Total Cost $ 6,000 57,000 92,000 $155,000 Sales for the quarter, all at $7 per unit, totaled 28,000 units leaving 17,000 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 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. Req 1A Req 1B Req 1C Req 2 Req 3 Calculate Topanga's cost of goods sold for the first quarter using FIFO. FIFO: # of units Cost per unit Cost of Goods Available for Sale Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO Ending Inventory - Periodic FIFO # of units sold Cost per unit Cost of Goods Sold # of units in ending Cost per unit Ending Inventory inventory Beginning Inventory 0 $ 0.00 $ 0 $ 0.00 $ 0 Purchases: January 7 February 16 19,000 3,000 $ 2.00 $3.00 6,000 57,000 3,000 $ 19,000 $ 2.00 6,000 $ 2.00 0 March 22 23,000 $4.00 92,000 23,000 $ 3.00 4.00 57,000 $ 3.00 0 92,000 $ 4.00 0 Total 45,000 $ 155,000 45,000 $ 155,000 0 $ 0 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 LIFO. Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO Ending Inventory - Periodic LIFO LIFO Cost per # of units unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending Cost per unit Ending Inventory inventory Beginning Inventory $ 0 $ 0.00 $ 0 $ 0.00 $ 0 Purchases: January 7 3,000 $ 2.00 6,000 2.00 0 $ 2.00 0 February 16 19,000 $3.00 57,000 3.00 0 $ 3.00 0 March 22 23,000 $ 4.00 92,000 4.00 0 $ 4.00 0 Total 45,000 $ 155,000 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.) Ending Inventory - Average Cost Cost of Goods Available for Sale Cost of Goods Sold - Average Cost Average Cost # of units Unit Cost Cost of Goods Available for Sale # of units sold Average Cost per Unit Cost of Goods Sold # of units in ending inventory Average Cost per Ending Inventory unit Beginning Inventory Purchases: January 7 3,000 $ 2.00 $ 6,000 February 16 19,000 $ 3.00 57,000 March 22 23,000 $4.00 92,000 Total 45,000 $ 155,000 EA $ 0 EA $ 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 co Choose Numerator: Choose Denominator: = Gross Profit Ratio FIFO LIFO Average cost ++ = Gross profit ratio 0 -+- = 0 = 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.