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 Unit Cost Total Cost Jan. 7 2 , $2.00 $ 4,000 Feb. 16 10,000 30,000 March 22 14,000 4.00 56 , Totals 26,000 $90,000 3.00 Sales for the quarter, all at $9 per unit, totaled 16,000 units leaving 10.000 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 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. Reg 1A Reg 18 Reg 10 Reg 2 Reg 3 Calculate Topanga's cost of goods sold for the first quarter using FIFO. FIFO Cost of Goods Available for Sale Cost of Goods Sold Periodic Firo Cost of Goods Cost of # of units of units Cost per Available for unit sold Sale unit Goods Sold ol 5 0.00 Cost per Ending Inventory Periodic FIFO # of units In ending Ending unit Inventory Inventory $ 0.00 Cost per $ Beginning Inventory Purchases January 7 February 16 March 22 Total 5 2.000 S 200 10 000 $ 3.00 14,000 $ 4,00 26,000 4000 30.000 56,000 90.000 2.00 3.00 400 $ $ $ 200 3.00 400 S $ Syruss 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 Red do Reg 1C Reg 2 Req3 Calculate Topanga's cost of goods sold for the first quarter using LIFO. LEO Cost per Cost of Goods Available for Sale Cost of Goods Sold. Periodic LIFO Cost of Goods #of units Available for of units Cost per Cost of unit Sale sold unt $ 01 s 0.00 Ending Inventory - Periodic LIFO #of units Cost per Ending unit inventory Inventory $ 0.00 Goods Sold in ending Beginning Inventory Purchases January 7 February 16 March 22 Total 2,000 $2.00 10.000 $ 3.00 14000 54.00 26.000 200 300 $ $ 5 4,000 30 000 56.000 90.000 $ 5 5 200 3.00 4.00 400 5 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. Reg 1A Reg 1B Req 1C Reg 2 Reg 3 Cost per 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 Unit Cost of Goods W of units Average of units # of units Average Cost of Cost Available for Cost per sold Ending In ending Goods Sold Sale Unit Inventory unit Inventory Beginning Inventory Purchases January 7 2,000 $ 2.00 $ 4,000 February 16 10,000 S 3.00 30.000 March 22 14,000 S4.00 56.000 Total 26.000 S 90,000 U.LV 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. Reg 1A Reg 18 Reg 1C Req2 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 LIFO ++ ## Average cost E
