User Account

All Pages

Calculate the topanga gross profit ratio

Assignment Help Accounting Basics
Reference no: EM131815434

Question - Topanga Group began operations early in 2011. Inventory purchase information for the quarter ended March 31, 2011, 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 Units Unit Cost Total cost

Jan 7 5000 $4.00 $20000

Feb 16 12,000 4.50 54,000

March 22 17,000 5.00 85,000

Totals 34000 159,000

Sales for the quarter, all at $7.00 per unit, totaled 20,000 units leaving 14,000 units on hand at the end of the quarter.

Required:

1. Calculate the Topanga's gross profit ratio for the first quarter using:

a. FIFO

b. LIFO

c. Average cost

2. Comment on the relative effect of each of the three inventory methods on the gross profit ratio.

Reference no: EM131815434

Questions Cloud

Prepare in general journal format the entries : Prepare in general journal format the entries required in the Ponce de Leon Endowment Fund to record the transactions occurring during the fiscal year
Describe the competitive dynamics : How would you describe the competitive dynamics? Would you want to enter this market, why or why not?
Seeu planned their market entry carefully : SeeU planned their market entry carefully. What might they have done differently to avoid this situation occurring?
Define total estimated economic life of the leased property : How to I verify that the lease is not qualified as a capital lease under FASB Codification 840-10-25-1? Minimum lease payments.
Calculate the topanga gross profit ratio : Calculate the Topanga's gross profit ratio for the first quarter using: FIFO, LIFO and Average cost
Identify global societal problem : GEN499 - Identify the global societal problem within the introductory paragraph and conclude with a thesis statement that states your proposed solution(s)
Convicted of conspiracy to commit : Dr. Duncan R. Danforth, a 75-year-old man of substantial means, married 21-year-old Loretta Ollison. Immediately following the ceremony, the newlyweds
Calculating the depreciation expense for consolidated group : At the beginning of the current period, Jessica Ltd sold a used depreciable asset to its wholly owned subsidiary
Why you feel the use of animal testing for cosmetics : Using ethical theory, explain why you feel the use of animal testing for cosmetics is ethical or not.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Discuss how managerial accounting helps managers

Describe the role of managerial accounting in contemporary business. Provide one specific, real-life example of how managerial accounting helps managers

  Demonstrate and understand the role of accountants

Outline the information each role provides and the users who rely on that information - identify any similarities and differences that exist between the (2) roles

  Rodriguez and escobedo income ratios

The Best Company at December 31 has cash $20,000, noncash assets $100,000, liabilities $55,000, and the following capital balances: Rodriguez $45,000 and Escobedo $20,000.

  Non-cumulative preference shares

Dividends in areas pertain to non-cumulative preference shares?

  Prepare journal entries to record each

Repeat requirement 1 assuming that the company uses the replacement depreciation method instead of the retirement method.

  Discuss the impact of breach or fraud on the organization

Discuss the impact of the breach/fraud on the organization. Describe the circumstances involved and the results of the event

  You have received the bank statement for your companys

you have received the bank statement for your companys account and need to reconcile it with your cash ledger account.

  What amount should mill recognize as gross profit

Mill billed and collected $3,000,000 from Drew in 1996. What amount should Mill recognize as gross profit for 1996

  Regis company payroll register showed

On January 8, the end of the first weekly pay period of the year, Regis Company's payroll register showed that its employees earned $ 22,760 of office salaries and $ 65,840 of sales salaries.

  Corporations income tax liability

In each of the following independent situations, determine the corporation's income tax liability. Assume that all corporations use a calendar year for tax purposes and that the tax year involved is 2010.

  The characteristics of revenue, expenditure, or conversion

What characteristics of administrative processes are different from the characteristics of revenue, expenditure, or conversion processes?

  Recognize the ongoing franchise fee each month

Recognize the ongoing franchise fee each month as it becomes due based on the operating terms as the franchise is operating.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd