Problem 8-6 Various inventory costing methods; gross profit ratio [LO8-1, 8-4, 8-7] Topanga Group began operations early in 2018. Inventory purchase information for the quarter ended March 31, 2018 for Topanga's only product is provided below. The unit costs include the cost of freight. The company uses a periodic inventory system Date of Purchase Jan.7 Feb. 16 March 22 Units Unit Cost Total Cost 8,000 $5.00 29,000 33,000 70,000 40,000 174,000 231,000 445,000 6.00 7.00 Totals Sales for the quarter, all at $10 per unit, totaled 40,000 units leaving 30,000 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 Toponga'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 1ARe 1BReq 1C Req 2 Calculate Topanga's cost of goods sold for the first quarter using FIFO Cost of Goods Available Cost of Goods Sold- En ding Inventory -Periodic for Sale Cost Goods units per Available sold unit for Sale Periodic FIFO FIFO Cost of | Cost of | # of units cost | Ending Goods in ending per unit Inventory FIFO Cost #of units per unitSold inventory Beginning Invento Purchases $ 0.00$ 0 $ 0.00 $ January7 February 16 March 22 $0.00 $ 0.00 $ 0.00 0 $0.00 $ 0.00 $ 0.00 0 Total 0 0 0 0 0 Req IAReq Req C eReq 3 Calculate Toponga'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 0 0 Complete this question by entering your answers in the tabs below. Req IA Req IB Req IC Req 2 Req 3 Comment on the relative effect of each of the three inventory methods on the gross profit ratio. In situations when costs are rising cost of goods sold and therefore, a gross profit ratio than FIFO LIFO results in a