Solution-Calculate Topanga cost of goods sold

Calculate Topanga cost of goods sold

Assignment Help Accounting Basics

Reference no: EM132426850

Question - 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	4,000	$4.00	$16,000
Feb. 16	12,000	5.00	60,000
March 22	16,000	6.00	96,000
Totals	32,000		$172,000

Sales for the quarter, all at $9 per unit, totaled 18,000 units leaving 14,000 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.

Reference no: EM132426850

Questions Cloud

Explain of the HITECH Act : Explanation of the HITECH Act and how it impacts We Care Hospital. Provide any case laws that identify HIPAA violations as a result of the computer technology

Create general journal - Record transactions of J Min Design : Assignment - Record the following transactions of J. Min Designs in a general journal: April 9 Paid amount due to O'Rourke Fabricators for purchase of April 1

Calculate the interest rate : You were given $1000 for your high school graduation. You invest it in a bank that will give you 7% interest annually. How much do you have in 4 years when yo

Briefly explain the venture capital process : Briefly explain the venture capital process. Does it make sense for your company to raise funds through venture capital?What is the corporate tax rate

Calculate Topanga cost of goods sold : Sales for the quarter, all at $9 per unit, totaled 18,000 units leaving 14,000 units on hand at the end of the quarter. Calculate Topanga cost of goods sold

Why does the dollar roll market exist : Why does the dollar roll market exist? Discuss the hedging chain between the consumer and the final MBS investor.Discuss the risks of roll vs. hold

Assess the organizations internal environment : Identify the most important strengths and weaknesses of your organization including an assessment of the organization's resources.

Calculate the amount to report for cost of goods sold : During 2021, 43,000 units were purchased for $20 per unit. Calculate the amount to report for cost of goods sold for 2021

What can supervisos say that legally permissible in sitution : What guidelines will you develop for supervisors to successfully respond to employee questions about unionization? What can your supervisors say

User Account

All Pages

Calculate Topanga cost of goods sold

Reference no: EM132426850

Reference no: EM132426850

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT