7. 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 9,000 25,000 29,000 63,000 Unit Cost RM 4.00 5.00 6.00 Total Cost RM 36,000 125,000 174,000 RM 335,000 Sales for the quarter, all at RM9 per unit, totaled 36,000 units leaving 27,000 units on hand at the end of the quarter. Required: i. Calculate Topanga's cost of goods sold for the first quarter using: a. FIFO b. Average cost ii. Calculate Topanga's gross profit ratio for the first quarter using FIFO and Average cost. iii. Comment on the relative effect of each of the inventory methods on the gross profit ratio.

7. 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 9,000 25,000 29,000 63,000 Unit Cost RM 4.00 5.00 6.00 Total Cost RM 36,000 125,000 174,000 RM 335,000 Sales for the quarter, all at RM9 per unit, totaled 36,000 units leaving 27,000 units on hand at the end of the quarter. Required: i. Calculate Topanga's cost of goods sold for the first quarter using: a. FIFO b. Average cost ii. Calculate Topanga's gross profit ratio for the first quarter using FIFO and Average cost. iii. Comment on the relative effect of each of the inventory methods on the gross profit ratio.

Name: 7. Topanga Group began operations early in 2024. Inventory purchase i
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Description: 7. Topanga Group began operations early in 2024. Inventory purchase information for the quarterended March 31, 2024, for Topanga's only product is provided below. The unit costs include thecost of freight. The company uses a periodic inventory syste

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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