1: Why in your opinion did Jims accountant recommend the average cost method and what difference is there with the three other methods? Explain the main characteristics of each method of valuation of the inventory and the consequences they may have on the valuation of the inventory and determination of the net income in case of price fluctuation.

2: Prepare an Income statement of the company at the end of February using as method of valuation of the inventory the average cost method, FIFO and LIFO for each one of the products sold by Jim, and calculate the balance of the inventory at the end of the month. Explain the calculations.

3: In order to compare with the records made by his accountant, Jim asks you to prepare the different journal entries for the purchases and sales mentioned above for each one of the 3 different methods used above.

4: Jim would like to know a forecast of the number of days to sell the inventory based on the results of the month of February. Explain your calculation and the steps followed.

Jim has recently opened a snack food wholesale company dedicated to the sale of peanuts, almonds and pistachios. During its first month of activity, the company has made the following transactions 2300 4000 4000 Price per Ke $12 56 $4 Amount $27.600 $24.000 $16,000 1500 1500 2500 $14 57 $5 February 2: Purchase of Pistachios Purchase of Almonds Purchase of Peanuts: February 3: Purchase of Pistachios: Purchase of Almonds Purchas of Peanuts February 6: Sold to several clients Pistachios: Almonds Peanuts: February 6 Sold to Fruits Lovers Inc. $21.000 $10.500 $12.500 1900 2500 2500 $21 $12 $10 $39.900 $30,000 $25,000 $21 513 $9 $10.500 $9.750 $13,500 Pistachios: 500 Almonds: 750 Peanuts: 1500 February 12 Purchase of Pistachios: 1350 Purchase of almonds: 3000 February 13: Sale of peanuts to Peanuts Lovers Inc.: 3250 February 14. Purchase of Peanuts 2000 $15 $8 $9 $20,250 $24,000 $29.250 $10,000 Besides these transactions, the company has had the following expenses Salaries: $3,750 Electricity bill: $400 Renting of equipment: $1,500 Rent of warehouse and office: $3,250 Miscellaneous: 51.250 Jim's accountant recommended that he should use the weapetost niethod in order to determine the cost of the inventory wild but Conces may have an inancial station Helying on your accounting knowledge masks you the following ustin 1: Why in your opinion did im's countant recommend the average cost method and what difference is there with the three other methode? Explain the man water to each method of station of the memory and the commune they may have on the time the inventory and international there come ince of price fluctuation 2. Prepare an income statement of the company at the end debrysis method to all the inventory the average cost method, woandro each one of the products by, and call the balance of the inventory at the end of the month plain the claim In order to compare with the records made by his accountant, as you to prepare the differentjournaler for the purchases and mente for each one of the 3 lent methods used abov 4.Jin would like to know forecast of the number of day to sell the inventory based on the result of the month of February, in your caution and the the followed Jim has recently opened a snack food wholesale company dedicated to the sale of peanuts, almonds and pistachios. During its first month of activity, the company has made the following transactions: Price per Ke $12 2300 4000 4000 Amount $27,600 $24,000 $16,000 56 54 February 2: Purchase of Pistachios: Purchase of Almonds: Purchase of Peanuts: February 3: Purchase of Pistachios: Purchase of Almonds: Purchas of Peanuts: 1500 1500 2500 $14 $7 $21,000 $10,500 $12,500 $5 $21 February 6: Sold to several clients: Pistachios: Almonds: Peanuts February 6: Sold to Fruits Lovers inc: 1900 2500 2500 $12 $39,900 $30,000 $25,000 $10 Pistachios: Almonds: Peanuts: 500 750 1500 $21 $13 $9 $10,500 $9,750 $13,500 $15 $8 $20,250 $24,000 February 12 Purchase of Pistachios: 1350 Purchase of almonds: 3000 February 13: Sale of peanuts to Peanuts Lovers inc.: 3250 February 14: Purchase of Peanuts 2000 59 $29,250 $5 $10,000 Besides these transactions, the company has had the following expenses: Salaries: $3,750 Electricity bill: $400 Renting of equipment: $1,500 Rent of warehouse and office: $3,250 Miscellaneous: $1,250 Jim has recently opened a snack food wholesale company dedicated to the sale of peanuts, almonds and pistachios. During its first month of activity, the company has made the following transactions 2300 4000 4000 Price per Ke $12 56 $4 Amount $27.600 $24.000 $16,000 1500 1500 2500 $14 57 $5 February 2: Purchase of Pistachios Purchase of Almonds Purchase of Peanuts: February 3: Purchase of Pistachios: Purchase of Almonds Purchas of Peanuts February 6: Sold to several clients Pistachios: Almonds Peanuts: February 6 Sold to Fruits Lovers Inc. $21.000 $10.500 $12.500 1900 2500 2500 $21 $12 $10 $39.900 $30,000 $25,000 $21 513 $9 $10.500 $9.750 $13,500 Pistachios: 500 Almonds: 750 Peanuts: 1500 February 12 Purchase of Pistachios: 1350 Purchase of almonds: 3000 February 13: Sale of peanuts to Peanuts Lovers Inc.: 3250 February 14. Purchase of Peanuts 2000 $15 $8 $9 $20,250 $24,000 $29.250 $10,000 Besides these transactions, the company has had the following expenses Salaries: $3,750 Electricity bill: $400 Renting of equipment: $1,500 Rent of warehouse and office: $3,250 Miscellaneous: 51.250 Jim's accountant recommended that he should use the weapetost niethod in order to determine the cost of the inventory wild but Conces may have an inancial station Helying on your accounting knowledge masks you the following ustin 1: Why in your opinion did im's countant recommend the average cost method and what difference is there with the three other methode? Explain the man water to each method of station of the memory and the commune they may have on the time the inventory and international there come ince of price fluctuation 2. Prepare an income statement of the company at the end debrysis method to all the inventory the average cost method, woandro each one of the products by, and call the balance of the inventory at the end of the month plain the claim In order to compare with the records made by his accountant, as you to prepare the differentjournaler for the purchases and mente for each one of the 3 lent methods used abov 4.Jin would like to know forecast of the number of day to sell the inventory based on the result of the month of February, in your caution and the the followed Jim has recently opened a snack food wholesale company dedicated to the sale of peanuts, almonds and pistachios. During its first month of activity, the company has made the following transactions: Price per Ke $12 2300 4000 4000 Amount $27,600 $24,000 $16,000 56 54 February 2: Purchase of Pistachios: Purchase of Almonds: Purchase of Peanuts: February 3: Purchase of Pistachios: Purchase of Almonds: Purchas of Peanuts: 1500 1500 2500 $14 $7 $21,000 $10,500 $12,500 $5 $21 February 6: Sold to several clients: Pistachios: Almonds: Peanuts February 6: Sold to Fruits Lovers inc: 1900 2500 2500 $12 $39,900 $30,000 $25,000 $10 Pistachios: Almonds: Peanuts: 500 750 1500 $21 $13 $9 $10,500 $9,750 $13,500 $15 $8 $20,250 $24,000 February 12 Purchase of Pistachios: 1350 Purchase of almonds: 3000 February 13: Sale of peanuts to Peanuts Lovers inc.: 3250 February 14: Purchase of Peanuts 2000 59 $29,250 $5 $10,000 Besides these transactions, the company has had the following expenses: Salaries: $3,750 Electricity bill: $400 Renting of equipment: $1,500 Rent of warehouse and office: $3,250 Miscellaneous: $1,250