Why in your opinion did Jim’s 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.

  
 

BUSINESS CASE (100 points) Jim has recently opened a dry fruits wholesale company dedicated to the sale of peanuts, almonds and pistachios. During its first month of activity, the company has made the following transactions: Kg Price per Kg Amount $12 $30,000 $28,000 $30,000 February 2: Purchase of Pistachios: 2500 Purchase of Almonds: 4000 $7 Purchas of Peanuts: 6000 $5 $21,000 $16,000 $12,000 February 3: Purchase of Pistachios: 1500 $14 Purchase of Almonds: 2000 $8 Purchas of Peanuts: 2000 $6 February 6: Sold to several clients: $22 $44,000 $32,500 $27,000 Pistachios: 2000 Almonds: 2500 $13 Peanuts: 3000 $9 February 6: Sold to Fruits Lovers Inc.: