Topanga Group began operations early in 2024. Inventory purchase information for the quarter ended March 31, 2024, 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 January 7 February 16 March 22 Totals Units 7,000 Unit Cost $ 6.00 Total Cost 28,000 32,000 7.00 8.00 $ 42,000 196,000 256,000 67,000 $ 494,000 Sales for the quarter, all at $10 per unit, totaled 39,000 units leaving 28,000 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 18 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: of units unit Cost of Goods Number Cost per Available for Number of units Cost per unit Cost of Goods Sold Number of units in Sale sold ending Cost per unit Ending Inventory inventory Beginning Inventory 0 $ 0.00 $ 0.00 Purchases: January 7 February 16 7,000 28,000 $ 6.00 42,000 $ 6.00 $ 6.00 $7.00 196,000 $ 7.00 $ 7.00 March 22 32,000 $ 8.00 256,000 $ 8.00 $ 8.00 Total 67,000 $ 494,000 Req 1A Req 18 Req 1C Req 2 Req 3 Calculate Topanga's cost of goods sold for the first quarter using LIFO. LIFO of units unit Cost of Goods Available for Sale Number Cost per Available for Cost of Goods Cost of Goods Sold Periodic LIFO Ending Inventory - Periodic LIFO Number of units Cost per unit Cost of Goods Sold Sale sold Number of units in ending inventory Cost per unit Ending Inventory Beginning Inventory $ $ 0.00 $ 0.00 Purchases: January 7 7,000 $ 6.00 42,000 $ 6.00 $ 6.00 February 16 28,000 $7.00 196,000 $ 7.00 $ 7.00 March 22 32.000 $ 8.00 256,000 $ 8.00 $ 8.00 Total 67,000 $ 494,000 Req 1A Req 18 Req 1C Req 2 Req 3 Calculate Topanga's cost of goods sold for the first quarter using average cost. Note: 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 Beginning Inventory Number Unit of units Cost Cost of Goods Available for Sale Number of Number of units sold Average Cost per Cost of Goods Sold units in ending Average Cost per Ending Inventory Unit unit inventory Purchases: January 7 February 16 28,000 7,000 $6.00 $ $7.00 42,000 196,000 March 22 32.000 $ 8.00 256,000 Total 67.000 $ 494,000 Complete this question by entering your answers in the tabs below. 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 FIFO LIFO Average cost ++ = Gross profit ratio Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 1C Req 2 Req 3 Comment on the relative effect of each of the three inventory methods on the gross profit ratio. cost of goods sold and therefore, a In situations when costs are rising, LIFO results in a gross profit ratio than FIFO.