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 6,000 27,000 31,000 64,000 Unit Cost $2.00 3.00 4.00 Total Cost $ 12,000 81,000 124,000 $217,000 Sales for the quarter, all at $9 per unit, totaled 38,000 units leaving 26,000 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. Reg 1A Reg 1B Reg 1c Reg 2 Req3 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 FIFO Cost of Goods # of units # of units Cost per Cost of unit sold Sale unit Goods Sold 0 $ 0.00 $ 0 Cost per Available for Ending Inventory - Periodic FIFO # of units Cost per Ending in ending unit Inventory inventory $ 0.00 $ 0 Beginning Inventory Purchases: January 7 February 16 March 22 12,000 $ 2.00 0 $ 2.00 0 0 81,000 $ 3.00 0 0 $ 3.00 6,000 $ 2.00 27,000 $ 3.00 31,000 $ 4.00 64,000 $ 4.00 0 4.00 0 124,000 217,000 Total $ 0 $ 0 0 $ 0 Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 10 Req 2 Reg 3 3 Calculate Topanga's cost of goods sold for the first quarter using LIFO. LIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO Cost of Goods # of units Cost per Available for # of units Cost per Cost of unit Sale sold unit Goods Sold $ $ 0.00 $ 0 Ending Inventory - Periodic LIFO # of units Cost per in ending Ending unit Inventory inventory $ 0.00 $ 0 0 $ 2.00 0 0 Beginning Inventory Purchases: January 7 February 16 March 22 Total 2.00 3.00 $ 3.00 0 6,000 $ 2.00 27,000 $ 3.00 31,000 $ 4.00 64,000 $ $ $ 0 12,000 81,000 124,000 217,000 $ 4.00 0 4.00 0 $ 0 $ 0 0 $ 0 Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Reg 2 Req3 Calculate Topanga's cost of goods sold for the first quarter using average cost. (Round average cost per unit to 4 decimal places.) Average Cost Cost of Goods Available for Sale Cost of Goods Unit # of units Available for Cost Sale Cost of Goods Sold - Average Cost Average # of units Cost per Cost of sold Unit Goods Sold Ending Inventory - Average Cost # of units Average Ending Cost per in ending Inventory inventory unit Beginning Inventory Purchases: January 7 February 16 March 22 Total 12,000 81,000 6,000 $ 2.00 $ 27,000 $ 3.00 31,000 $ 4.00 64,000 $ 124,000 217,000 $ 0 $ 0 Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Reg 2 Reg 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 11 0 Average cost 11 . 0 Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 1C Reg 2 Req3 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
